" Is it just me or has this world completely lost touch with what a real problem is."
The real problem has nothing to do with oil. The real problem is that debt is growing exponentially globally. Look at Europe, look at Japan. Look at the US. Look at China (Esp the insane growth in their bank assets, which are nothing more than a reflection of the debt in the country). Name me a country of ANY significance that has not seen an explosion in debt in the last 15-20 years. There are none. Ever country is trying to solve debt problems with MORE debt or trying to pursue this illusion that growth =good.
What we are seeing now, in the oil market, in the credit markets, in the stock markets, are just the reaction to this debt. The central banks' game of trying to create wealth by printing money are ZIRP or NIRP or whatever is in the ninth inning. They may have one last kick at the can this year (I expect some sort of idiotic coordinated action), but after that, things look very dicey IMO...economically speaking, of course. Life will go on and it is beautiful, as it always was.