Just a month ago we were told that stock markets round the world had lost their nerve because interest rates every-where were heading higher to counter the inflationary consequences of leaping oil and metals prices, while the dollar was poised to fall off the cliff, messing up the entire global economy.
Stock markets are still sliding, with oil and mining shares leading the way down - but now because oil and metals prices are tumbling, while higher interest rates looming in the States have helped the dollar to a five-week high against the euro.
Tough if you are a shareholder in BP, or, more exotically, Kazakhmys, but you had your chance to take a colossal profit while the going was good.
For the rest of us, the bursting of the commodity bubble is more good news than bad.
It is certainly good for industrialists, not least in the West Midlands, who have been hard pressed to pass on more than a fraction of the inflated cost of their raw materials.
One can over-state this. Oil at $69 in New York, or some-thing under $68 for Brent, is a welcome break from $75-plus in April. But it is nobody's bargain.
BP's Lord Browne assures us it has a good way to fall over the coming years and nobody is better placed to judge that. The short term could be something else.
Nothing has happened to slake China's notorious thirst for oil. Hurricane Alberto turned out to be a non-event in the Gulf of Mexico - but we are just 14 days into the new hurricane season. Above all, the great stand-off with would-be nuclear Iran could still turn out disastrously.
Yet when it comes to interest rates and inflation, all this cuts two ways. As the Bank of England's governor Mervyn King pointed out on Monday, money drained away by oilinflated gas and electricity bills is not there to be spent driving up the price of some-thing else. Whether that really makes utility bills a proxy for interest rates is a subtle point, on which learned economists can, and doubtless will differ.
The distinction is presentational - that household bills loom large in the official measure of inflation, while mortgage interest, along with council tax and house prices, stays out of sight. Either way, the money cannot be spent again - except by the banks or utility companies that take it off us.
The best thing is that it was Mr King, no less, who aired the issue, with the implication that utility-driven inflation is different, possibly a reason for keeping interest rates down - at least until the dread moment when someone bangs in a determined pay claim and gets the money back off their employer.
That is where Gordon Brown came in yesterday, back being Chancellor, not Prime Minister-in-waiting, with a two per cent target for public sector pay from next year. No nonsense now about productivity squaring something fatter with the inflation target.
We shall see what will the public sector unions say about that - and whether any Chancellor in a Brown Government has the clout to see them off.