1) Whatever gave these Einstein's the idea that world recovery would be FAST??
Answer: NOTHING. It has been apparent for six months that the recovery under Obama will take us years.
2) Oil may well be dropping because the 3-4 speculators who kept prices high have been found out and names are known and they want to live. With those 3-4 out of the game, it dropped and added to the failing world economy, oil continued to fall to a reasonable rate.
By Wednesday, it was below $63 a barrel. Gas dropped .07 a gallon.
Now, if oil rose $4 a barrel, gas would jump 20 cents at least!!!
World stocks fall as oil drops below $64 a barrel amid faltering economic optimism
By Pan Pylas, AP Business Writer
On Monday July 6, 2009, 8:36 am EDT
LONDON (AP) -- World stock markets fell as oil prices slumped below $64 a barrel Monday amid concerns that any recovery in the global economy will be a long, hard slog following disappointing U.S. jobs data last week.
In Europe, the FTSE 100 index of leading British shares was down 46.10 points, or 1.1 percent, at 4,190.18 while Germany's DAX declined 70.46 points, or 1.5 percent, to 4,637.75. The CAC-40 in France was 47.41 points, or 1.5 percent, lower at 3,072.10.
Wall Street futures pointed to a weaker open Monday. Dow futures were down 89 points, or 1.1 percent, at 8,152 while the broader Standard & Poor's 500 futures fell 10 points, or 1.1 percent, to 883.30.
Trading volumes were light in both Europe and Asia as investors awaited a lead from Wall Street, which was closed Friday for the Independence Day holiday. U.S. stocks had been hit last Thursday after the nonfarm payrolls data, which showed U.S. employers slashed 467,000 jobs in June -- 100,000 more than anticipated.
"Markets sold off hard on the back of those payroll figures last Thursday so the potential remains for something of a reversion to be seen but we are now moving into the slower summer season and so long as the green shoots of recovery continue to struggle to take root, then equities will likely remain adrift," said Matt Buckland, a dealer at CMC Markets.
Equities rose from the middle of March until the start of June on hopes that the U.S. economy in particular will recover from recession sooner than anticipated. Many investors saw stock valuations as particularly cheap and started buying. The S&P 500 index in the U.S. rose around 16 percent during the second quarter, its best performance since 1998, amid hopes of a global recovery despite worries about the banking system, public finances and the length and depth of the recession.
But disappointing economic news over the last few weeks brought an abrupt end to the rally and altered the general mood prevailing among investors. The start of the second quarter earnings reporting season will provide some clues as to whether companies have already seen the worst of the recession. U.S. aluminum giant Alcoa Inc. opens earnings season on Wednesday.
"Aside from international developments, markets should also focus on the upcoming Q2 earnings in the U.S., which get started this week, and its impact on the growth outlook," said Geoffrey Yu, an analyst at UBS.
"Markets have rallied throughout Q2 on the back of strong growth expectations but if the cyclical rebound fails to materialize due to structural problems, especially in the U.S., markets may correct sharply," he added.
Earlier in Asia, Japan's Nikkei 225 stock average fell 135.20, or 1.4 percent, to 9,680.87 and Hong Kong's Hang Seng dropped 226.23, or 1.2 percent, to 17,977.17 in a choppy session.
Elsewhere, Australia's index lost 1.2 percent and Singapore's market closed off 1.2 percent.
Defying the region's losses, South Korea's Kospi added 0.6 percent after Samsung Electronics Co., the world's biggest manufacturer of memory chips, announced quarterly profit estimates for the first time. The company estimated operating profit would come it at between 2.2 trillion won and 2.6 trillion won, compared with 2.4 trillion won last year.
In mainland China, the benchmark Shanghai Composite Index closed up 1.2 percent at 3,124.67, a 13-month high.
Thailand's stock market is closed Monday and Tuesday.
Oil prices tumbled amid the global economic uncertainty, with benchmark crude for August delivery down $3.29 to $63.44 a barrel.
The dollar fell 0.8 percent to 95.27 yen the euro dropped 0.4 percent $1.3896.
A big loser Monday was the pound, which fell 1 percent to $1.6131.
Earlier this year, the pound fell to a near 24-year low of just above $1.35 amid mounting worries about the state of the British economy and the level of government borrowing. It slowly recouped some of the losses since March as the appetite for risk improved, most notably in the stock markets. With concerns about the growth outlook, the early-year concerns may be re-emerging.
"Anecdotal evidence suggests some sterling selling by central banks has already taken place, but the biggest sterling threat comes from private investors turning their backs on Britain due to declining investment opportunities and the rising default risk," said Hans Redeker, global head of FX strategy at BNP Paribas.
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