Lower gas prices are bad for the global economy. - Inspired by falling global commodity prices

The stock market saw its biggest gain in four months on August 5 thanks to falling commodity prices, especially oil. However, commodities have fallen because of a global slowdown in economic growth, which is only going to get worse.

Peter Coy of BusinessWeek reports: “Traders are bailing out of commodities in part because of evidence of weakening demand and in part because they predict demand will soften in the months ahead as the economic slump and credit crunch that began in the U.S. a year ago spread abroad.”