Riddle of the burst bubble

Commentary and market watch by Doug Noland

Here's how I see it. Many are celebrating the bursting of the energy/commodities bubble. Rapidly declining oil and resource prices are now expected to alleviate inflationary pressures while bolstering household purchasing power. There'll be no pressure on the US Federal Reserve to raise rates, while their global central bank compatriots can soon begin cutting. The consensus view is that this is bullish for the US economy and stock market and, if nothing else, market action did take attention away from troubling financial and economic news.