Long term of course, it is always a good thing. Contrary to what Central Bankers and the economist are telling us, it is always a good thing when consumer prices fall. Even Janet Yellen acknowledged the benefits of lower gas prices. Well, the same thing applies to all prices.
But here is the problem. If it turns out that we had a bubble in the energy sector, if the Federal Reserve really does raise interest rates, and I don`t really think they are going to, but if they do and the oil prices stays at these prices or goes lower, all of the activity in the oil sector for the last past several years turns out to have been a bubble and the layoffs that we are going to get in the short run and the credit losses and the Capex spending declines will be significant enough in the short run to push the U.S. Economy back into recession. I think it is a bigger impact than the bursting of the dot com bubble.
Related stocks: Exxon Mobil (XOM), Marathon oil (MRO), ConocoPhillips (COP), Chevron (CVX), Halliburton (HAL), Schlumberger (SLB)
Related exchange traded funds: Energy Select Sector SPDR ETF (XLE), United States Oil Fund LP ETF (USO)
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
- ► 2017 (167)
- ► 2016 (252)
- ► 2015 (344)
- Oil: Where Is The Global Demand?
- Oil: The First Of Many Bubbles To Pop?
- Lower Oil Prices Will Push The U.S. Economy Into R...
- A Lot Of Disconnect In The Markets
- U.S. Economy Is In Rapid Deceleration
- What Falling Oil Prices May Be Signaling
- The Longer The Federal Reserve Waits To Raise Rate...
- The Yellen`s Paradox
- Bitcoin & The Russian Crisis
- Without QE4 Real Estate Will Look Like Oil
- The Real Reason Why Stocks and Oil Are Falling
- Russia: Central Bank Raises Rates To 17%!
- U.S. Economy: More Evidence Of Economic Contractio...
- Stock Market: Technicals Look Pretty Weak
- Stock Market: A Change In Trend?
- 2014: Gold vs. World Stock Markets
- Retail Sales: The Economy Is Not Driven By Spendin...
- A Sharp Oil Reversal
- Stock Market: No Sure Bets
- This Is Going To Light A Fire Under The Gold Trade...
- If The Fed Raises Rates, All Job Creation Will Dis...
- Central Banks Are Playing With Fire
- U.S. Trade Deficit In Manufacturing Goods Hits Rec...
- U.S. Economy: Trade Deficit & Job Creation
- Is Germany Opposing An European QE?
- Europe: QE or No QE?
- ECB: Considering Buying Everything Except Gold
- Falling Oil Prices Are Good For The European Econo...
- Video: Falling Prices Would Help The Economy
- National Debt Tops 18 Trillion Dollars
- Expecting A Weak Holiday Season
- U.S. Economy: Could Be The Worst Shopping Season I...
- Crude Oil Collapsing Like In 2009
- Gold: Russia Will Get A Good Buy
- ▼ December (34)