LOWER PRICES, LOWER INTEREST RATES, IRRESPONSIBLE WALL STREETERS LOOKING FOR WORK, AND 401K BUYING OPPORTUNITIES...:

Inflation Eases on Oil Price Drops (BRIAN BLACKSTONE, 9/16/08, Wall Street Journal)

U.S. consumer prices fell last month for the first time in nearly two years reflecting a rapid drop in oil prices as well as lower prices for automobiles and housing, which slid for the first time in over five years.

The figures, which included a tame rise in core prices excluding food and energy, should make it easier for Federal Reserve officials to address severe strains in financial markets by cutting interest rates if needed without having to worry about an inflationary outbreak.

Oil Drops Below $91 a Barrel (Steven Mufson, 9/16/08, Washington Post)

Crude oil prices plunged again today, falling below $91 a barrel at one point this morning as traders and investors worried about lower oil demand from a weakened economy and the prospect that troubled financial firms would curtail oil trading or liquidate positions. The dip in prices follows a 5.4 percent drop yesterday that brought the cost of oil below $100 a barrel for first time since Feb. 15.

Is there any downside?

Posted by Orrin Judd at September 16, 2008 11:51 AM