BP - off the hook ? ...and a BUY ?

StevieJ

lvader wrote: »

Normal in that it has been done before and is known to work. $200M is peanuts, the least of BPs troubles at the moment.

Problem is it is two and a half months off.

lvader

StevieJ wrote: »

Problem is it is two and a half months off.

Yes, if the could have it next week but at a cost $1bn instead of the $200M I'm sure they would go for it.

worldtraveller

BP’s failure to stop its gushing well has brought the company and the U.S. government under severe scrutiny. Despite multiple attempts to stop the leak, thousands of barrels of oil are leaking into the Gulf of Mexico every day.

President Clinton’s former Labor Secretary, Robert Reich, wrote in the Wall Street Journal suggesting that the only way to fix the leak is a government takeover of BP. Fox News senior judicial analyst Judge Andrew Napolitano joined Varney and Company to discuss the highly controversial suggestion.

“This would truly be a nuclear option that the government would try and take over private business like this,” said Napolitano. “In reality, look, they took over General Motors – in reality they took over Chrysler. In reality they [the Obama Administration] will try and take over anything they can by tweaking the laws and twisting the constitution.”

The Judge argues that the constitution does not allow for such a takeover to occur. Chrysler and General Motors were in dire financial straits when the Obama administration decided to use taxpayer mopney for a takeover. While BP is certainly in crisis mode in dealing with the leaking well, the company is far from bankruptcy and still generates huge profits.

“The constitution – if it means what it says – says the government may not take life, liberty or property without due process of law. Due process of law means that you have to sue them and show what they did wrong,” explained Napolitano. “And you wouldn’t start a lawsuit until they cap this oil.”

In his letter to the Wall Street Journal, Reich argues that a government takeover of BP is the only way to do the job right.

“It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped,” said Reich. “If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP’s North American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history.”

Regardless of the legal grounds for a takeover, the situation remains dire in the Gulf. BP’s well has leaked more oil into the ocean than first expected and the spill is now estimated to be the largest in U.S. history.

Fox Business

I thought I would just drop that one into the mix. :whistle:

97trophy

also today (1st June) is the first day of hurricane season.

lvader

worldtraveller wrote: »

Fox Business

You should have started with the link, knowing where it came from would have stopped me from reading any further.

tradetime

It is getting close to the time for the fundamental folks to start calculating the sum of the parts. BP is now valued at less than half Exxon Mobil, so it is only a matter of time before the vultures start circling. BP may find itself fighting to protect its very existence. The one challenge for a potential acquirer would be getting it past the monopolies commissions. Current dividend costs the company $10 Billion per year, look for that to come under pressure in the coming weeks.

amcluesent

>I thought I would just drop that one into the mix.<

Interesting option. As we are at the start of the 3 decade Long Emergency and the resource wars have already started (all be it, under the pretence of 'war on terror') then simply abandoning private property rights may be the way forward. As Obama is essentially a Marxist/collectivist at heart, that option will appeal and even the neo-cons may say it's the only way to stand-up to China.

The US simply seized private bullion in the Great Depression, so it's not like they haven't got form. Grabbing BP's resources and assets may defer the invasion of Iran by 5 years or more.

As energy, food and water supplied dwindle, I guess 'by any means necessary' will be the cry of politicians in the West as they see the mob gathering.

fullstop

Find it interesting that there has been very little mention of the 11 oil workers killed in the explosion, or the many more injured.

tradetime

Gulf oil disaster now the subject of an official criminal investigation.

amcluesent

>very little mention of the 11 oil workers killed in the explosion<

Blacks?