Sadly, what we are experiencing right now is so similar to what we witnessed in 2007 and early 2008. The stock market had been on a great run, people were flipping houses like crazy and most people were convinced that the party would never end. But then it did end – very painfully. The signs of trouble were there, but most people chose to ignore them. Sadly, the exact same thing is happening again. On Monday, the price of oil hit a brand new five year low. As I write this, U.S. oil is sitting at a price of $53.76 a barrel, which is nearly a 50 percent decline from the peak earlier this year. There is only one other time in history when the price of oil has declined by more than 50 dollars a barrel in such a short time frame. That was back in the middle of 2008, shortly before the worst stock market crash since the Great Depression. Unless the price of oil starts really bouncing back, the U.S. economy is going to be hit really hard. Since 2009, oil industry employment has risen by 50 percent. And jobs in the oil industry pay quite well. One figure that I saw put the average weekly wage at about 1700 dollars. But now we aren’t going to be gaining those types of jobs. Instead, we are going to rapidly start losing them. Already, the oil rig count has dropped for three weeks in a row and is now at an 8 month low. And as the oil industry suffers, all of the industries that it supports are also going to start feeling the pain. In fact, Business Insider is reporting that Texas business executives are “freaked out” about what is happening… More: theeconomiccollapseblog/archives/american-people-utterly-clueless-going-happen-enter-2015
Posted on: Tue, 30 Dec 2014 04:08:58 +0000
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