oil

Downside of Falling Oil Prices

I.C. Angles Investment Post…

Business journalists are celebrating the approximately 40 percent decline in oil prices from their June highs, as a positive development for the economy. Their reasoning is simplistic. Lower oil prices mean more money in the pockets of consumers, which means more spending by Americans and hence more economic growth. But three other factors argue that falling oil prices actually represent a net negative for the U.S. economy, despite the positive of American consumers spending less on energy.

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