20 years to the day of the infamous 508 point Wall Street "Black Monday" crash of 1987, today witnessed a huge 366 point downturn. A "perfect storm' of bad earning reports and oil prices still hovering close to $90 a barrel only served to send out an early Halloween spooking of Wall Street investors and ruin the market today.
However, there is good reason to be concerned about the overall health of the economy. Oil was just $2 a barrel in 1973 compared to nearly $90 a barrel again today. 9 out of 10 times in the last 50 years when there was huge oil inflation, there was a recession that soon followed.
Many more factors are yet to fall into line that will spook consumers and dry up spending and create a cycle of job layoffs to create a recession. But high oil prices will certainly only hurt and could lay the groundwork for more coming problems and a chain reaction of less consumer spending, more job losses.
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