Thursday, May 6, 2010

Looks Like My Call To Nationalize BP In Order To Ensure Full Compensation

for damages from the oil catastrophe was not so outrageous after all: 
Critics of the deal being worked out between Obama and Hayward point out that $10 billion is a mere drop in the bucket for a trillion dollar disaster but also note that BP, if its assets were nationalized, could fetch almost a trillion dollars for compensation purposes. There is talk in some government circles, including FEMA, of the need to nationalize BP in order to compensate those who will ultimately be affected by the worst oil disaster in the history of the world.
Here's the link from Zero Hedge:  LINK

I have been told that the shrimp industry in the Gulf will be wiped out for several years after this year.  That's just for starters.  The National Oceanic and Atmospheric Administration issued a report in which they estimated that in 2006 the Gulf fishing industry produced $7.8 billion in totals sales to the region's economy.  Here's the link to that report:  LINK.

If you read the Zero Hedge post, it is clear that BP is doing its best to try and cover-up as much as they can about the severity and cost of this disaster.  Last week NPR reported that right after the rig blew, BP representatives were swarming the coastal towns trying to persuade local fisherman to take a $5,000 check in return for signing a waiver which would prevent the signee from suing BP for damages.  Apparently Obama halted that effort.

What I find to be most ironic is how quickly the media has taken this story largely off the radar.  I guess people would rather read about more important things like what's happening on American Idol or Jennifer Aniston's feeding habits...I would like to know why Obama is so quickly trying to negotiate a cap on BP's liability exposure.  Hasn't he given enough taxpayer largesse to the Big Banks?  After all, beyond BP's liability, the Taxpayer will be the deep pockets paying for this one.


  1. Dave, I'm not buying yesterdays selloff in equities... I still feel we will hyperinflate to DOW 50'000 thanxs to Banana Ben.

  2. The Dow has a skynet feel to it, did it not.

    I am convinced the Orwellian press is covering up the magnitude of this oil flow and hence its impact. This event is much bigger that anybody realizes, yet.

    Joe M.

  3. No doubt Joe. BP will do whatever it can to limit it's liability. Oil companies have always been huge crooks.

  4. I think the gov't wants to get as much domestic production on line ASAP as they see oil prices spiking, and they don't want domestic resistance to this.

    Unfortunately, things are going to deteriorate so quickly that they won't have a chance to get production on line before the crash.

  5. why nationalize BP? just shut them down, sell their assets. and make their staff clean up the mess until retirement.

  6. Anonymous: if BP were a big bank, I'd agree with you. But BP is worth more alive than dead and it needs to be managed for the benefit of fixing the disaster it created.

    If the shareholders/manangement keep control, it will managed to minimize its liability exposure and looted for the benefit of mostly management -pure Darwinian/Machiavellian human condition. Unfortunately Obama is too stupid and blind to understand either and they apply to this situation.