Economics is never a one-way street. No matter what happens to a price or a supply or a quantity, someone loses and someone wins and everything changes in due time. Lower oil prices mean consumers have more money to spend and many businesses enjoy better margins.
Supply will drop gradually and prices will move to a new equilibrium. If more companies go broke, more resources are freed up to be better utilized. There are always short term problems but in the long run, the system corrects. That is why the endless doomsday prophets are always right eventually and wrong most of the time. It is why being a long term diversified investor works as nothing else does.
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Huge Trouble Is Percolating Just Under The Surface Of The Global Economy
Economics is never a one-way street. No matter what happens to a price or a supply or a quantity, someone loses and someone wins and everything changes in due time. Lower oil prices mean consumers have more money to spend and many businesses enjoy better margins.
Supply will drop gradually and prices will move to a new equilibrium. If more companies go broke, more resources are freed up to be better utilized. There are always short term problems but in the long run, the system corrects. That is why the endless doomsday prophets are always right eventually and wrong most of the time. It is why being a long term diversified investor works as nothing else does.