Why is Wall Street frowning? Because things
seem to be going better for the average
As of late the morning of Friday, December 23...
- Oil prices have plunged to the lowest level since 2009, below $60 a barrel. This means that ordinary Americans will be able to spend less on gasoline and heating oil, and therefore will have more money to spend on other things, a spur to the economy.
- A long-expected increase in interest rates by the Fed is now less likely to happen, making borrowing cheaper for consumers and growth-minded businesses as well.
- Consumer confidence, a measure of the ordinary American’s willingness to spend money, is above expectations. And it’s at an eight-year high. This ought to result in more money getting poured into the economy, fueling further growth.
Pop the champagne corks, right?
Well, not on Wall Street where, as of 11:40 a.m., the Dow Jones Industrial Average stood at 17,399, a tumble of 196.63 points since the day before.
However, perhaps Wall Street won’t be unhappy for very long. The latest budget “compromise” in Congress changes parts of the Dodd Frank financial reform law that banned crazy derivatives trading.
So now bankers will be able to recreate the same financial meltdown we had a few years ago, with the bland assurance that you and I will once more be forced to bail them out. Either that, or we collapse into another Great Depression.