It was another terrible day on Wall Street, the Dow down 449 points, and oil prices are up slightly in the aftermath of Hurricane Ike and the temporary closure of Gulf Coast refineries. But, overall, oil prices are down by about 38 percent from their high in July. The precipitous oil price drop is still getting processed through the system, but it already has been a quiet, nearly unreported boon to consumers, plus such industries as food and transportation.
Inflation has to be a long term concern as the federal government prints money to bail out major corporations. However, the bite is not being felt now. The dollar finally has begun to strengthen. For example, the value of the Euro has dropped since July from 1.56 to the dollar to 1.42 today.
These are small, but real, consolations. The oil spike was one major reason for the economic problems of the country. Now the drop could begin to help a recovery.
