It’s also a massive fiscal stimulus. Oil prices went from ~$45 to ~$37, about 20%. The annual US oil consumption bill just went from ~$300b to ~$240b. It’s as if American consumers and manufacturers collectively got $60b more in their pockets per year. For some perspective, the payroll tax cut is estimated to cost $150b a year. If oil prices went to $25, that would represent a $180b annual stimulus.
All good, and important, points! I was thinking of posting much the same thing — but, you said it all.
All that, and pummeling Iran’s economy too!
And THAT dear sir, is why I wonder about the stupidity (deliberate co-thinkning and mindlessness?) of the news media and THEIR “expert sources” on Monday DURING the self-called “oil crisis” causing a Wall Street failure.
ANY reason for lower oil prices will (temporarily) hurt oil company profits, but EVERYBODY ELSE will spend less ion their raw materials (paint, chemicals, plastics, polymers, insulation, installation, travel, shipping, energy, electricity, heating, forming, tooling, ,,,,) and so everybody’s profits rise.
Except those who have invested in shorting oil companies.
So, why did everybody lower prices were causing a crisis on Wall Street?