Wise words on the economy from my friend Larry Kudlow of CNBC:
The commodity drop signals the death of inflation expectations. And of course, the oil plunge itself is a big tax cut for consumers. Not only will real wages start rising again, but folks will be able to service their mortgages. That's good for banks. There's a lot of volatility and cross currents in the stock market right now. But this consumer/banking theme should hold the test. The trick here is to look through the front view of the windshield, rather than the rearview mirror of yesterday's credit crunch like Lehman Brothers, Washington Mutual, and other cases. The game changer is oil's drop and the dollar's rise. The collapse of gold adds more icing to the cake.