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Wall Street debates implications of crude's drop

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What had looked like a good thing for consumers and their disposable income with the falling price of oil has shifted to hand-wringing amid stories of what crude's drop means for the global economy and capital spending.

The truth likely lies somewhere in the middle, said Bruce McCain, chief investment strategist at Key Private Bank.

"Net oil consumers such as Europe and Japan should be better off, net producers like Canada will be worse off, " McCain said.

On Tuesday, the International Monetary Fund weighed in, repeating its expectation that the steep fall in crude will increase global output in 2015 between 0.3 percent to 0.7 percent, while bringing a "new risk dimension" to the world.

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The IMF projected the global economy will grow 3.5 percent this year, down from the 3.8 percent gain estimated in October.

"The forecast for the global economy is coming down, largely because they recognize as investors do today that the decline in the price of oil, whether we're talking about day or the last month, carries with it negative implications for the global economy," said Hugh Johnson, chairman of Hugh Johnson Advisors.

"Although the decline in the price of oil is likely to be good news for importing economies, it is not particularly good news for the global economy," said Hugh Johnson, chairman of Hugh Johnson Advisors.