The Jan. 9 article, “Cheaper oil = more jobs? How lower crude oil prices could fuel hiring in many industries,” stated: “Industry suppliers such as U.S. Steel blamed the falling prices in announcing plans this week to lay off 756 workers who make tubing for the oil sector.”

That’s one example of layoffs taking place, because future drilling and explorations are being canceled or put on hold. Investment money to finance new production sites are evaporating and that makes producing oil more expensive. Don’t take my word for it; look at energy stocks, particularly from smaller exploration and production companies, to see how they are crashing from fewer investors.

This isn’t surprising because it’s occurring while the Federal Reserve ends it’s latest quantitative easing program and threating to raise interest rates next year. We also are seeing oil prices going down, because demand is down. A lot of banks have loaned a lot of money to oil drilling companies, and those loans can go into default, wiping out the balance sheets of a lot of banks. This is a prelude to another “bailout,” similar to the one during our recent Great Recession.

When that economic bubble bursts, others will follow: The stock market, the real estate market, the bond market and others that are related to these. Remember, oil prices dropped in 2008 and we still had the recession.

The oil market is propped up by cheap money because the Federal Reserve keeps printing money. Cheap oil won’t last because after it dropped in 2008, we started quantitative easing and oil prices shot straight up. Enjoy our short-term economic boost while it lasts, and prepare for the worst.

Douglas Papa

Hallowell

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