Deflation, deflation, deflation
As oil looks set for its biggest percentage fall since 1991 - down by 33% currently - there is also a further spillover effect as it pushes major central banks (especially the likes of the ECB and BOJ) further into a corner in terms of trying to react.
The capitulation in the market is but a sign that deflationary pressures look set to win out and with central banks slowly exhausting all their policy options over the past few years, they don't have much room to respond to the current events in the market.
The Fed looks to be the most comfortable but if you look at the situation, that is hardly a pillar of confidence. And when you look over to the likes of the ECB, BOJ and soon enough RBA, what can they do to try and fight back against this?
