Getting to the Point

 | Sep 28, 2011 | 4:55 PM EDT
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At some point, the bad news will be good news.

At some point, the declines in commodities will mean more purchasing power, less worry about inflation and a sense that things are going to be better simply because it is cheaper to feed and clothe your family.

But that point has not been reached yet.

Instead, we have the worst of all possible worlds. We have commodities predicting a calamitous recession, and no one thinks that cutting down inflation means anything at all. There's no positive worldview stemming from this decline.

So, we take beatings like today. We see oil companies being cut in half from their highs -- as if oil's going to be cut in half -- yet we have Brent Crude stuck over $100 per barrel, and Brent is what matters. It's as if every commodity in the world is down -- except the one that matters!

Until Brent comes down and until we start seeing companies raise numbers in their forecasts because of declining raw costs, we are trapped in a hideous world where every commodity downtick destroys every industrial and oil, as it happened today.

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