This page has been archived and commenting is disabled.

The Media Campaign Begins: BP Is Now Too Big To Fail

Tyler Durden's picture




 

As prospects before BP get darker by the day, and the likelihood of bankruptcy grows, the TBTF propaganda begins. Evidence A - Bloomberg headline: "BP Demise Would Threaten U.S. Energy Security, Industry." Just as the failure of bankrupt banks was supposed to lead to the destruction of capitalism, so the bankruptcy of BP plc is now supposed to lead to the degeneration of US energy independence. And who in their mind would force the Chapter 11 of a systemically important company? Once again, free market capitalism is about to walk out through the back door...

From Bloomberg:

The company’s demise would be disruptive to the American oil industry, given that BP is the largest oil and gas producer in the U.S., with about 1 million barrels per day of production. Some 7,000 of BP’s 23,000 U.S. employees work in the Houston area, many in a suburban office park just off the Katy Freeway.

From there the company runs its Gulf of Mexico offshore operations with a phalanx of engineers, geologists, and computer scientists. “These are highly compensated people,” says J. Robinson West, chairman of Washington-based consultants PFC Energy.

But more than just billions in annual individual tax revenue, BP also serves a "critical" FR role. If not for BP, it would have been the end of the world.

BP’s skill at negotiating access to new energy resources, especially in strategically important regions, has also served U.S. interests.

The company opened up Azerbaijan, a major producer in the Caspian Sea region, for oil development. It has developed two oil and gas fields there, as well as the Baku-Tbilisi-Ceyhan crude oil pipeline through Turkey that opened in 2004 and offers a counterweight to Russian dominance in the region.

A collapse or liquidation of assets by BP will surely shift the balance of energy power toward the Russians and the Chinese. This, too, will certainly result in the end of the world.

A person familiar with BP’s investment plans says it may need to raise as much as $50 billion to cover costs related to the disaster. Oppenheimer & Co. oil analyst Fadel Gheit thinks BP could end up in bankruptcy if costs exceed $100 billion, a possibility if partners in the stricken well, such as Anadarko Petroleum Corp., manage to pin full legal responsibility for the oil spill on the U.K.-based producer.

If so, BP may have to part with some prized assets, and Chinese and Russian oil companies less sympathetic to U.S. interests could step in as buyers and change the geopolitics of the oil industry.

“Companies will be interested in buying assets in Azerbaijan, Angola, Brazil, and potentially also Norway,” says Gudmund Halle Isfeldt, an analyst at DnB Nor ASA in Oslo, Norway’s largest bank.

So now that we know BP is the new AIG, and the new media campaign is to paint it as this year's TBTF, the only question we need to ask is how many billions in CDS has Goldman sold that reference the BP, and/or how many billions in counterparty risk the firm has outstanding with BP? Surely the answer is "lots", and a simple and elegant solution that would prevent the domino effect that bring take down Goldman and its peers, is the taxpayer funded bailout of the energy giant, which has quietly morphed into another too big to fail company. The opportunity cost, of course, is a ten million march of all soon to be terminally unemployed, and very agnry, gulf workers headed toward D.C. and 200 West.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/24/2010 - 01:13 | 430883 Nolsgrad
Nolsgrad's picture

60,000bpd X 100days X $4,350 = $26,100,000,000 fine alone.

Maybe they'll get a quantitiy discount

Thu, 06/24/2010 - 01:43 | 430916 septicshock
septicshock's picture

Can I get a what what!

Thu, 06/24/2010 - 01:49 | 430930 digitalhermit
digitalhermit's picture

What what in the (taxpayers) butt, that is. That's where this TBTF sh*t always ends up.

http://www.youtube.com/watch?v=fbGkxcY7YFU

 

Thu, 06/24/2010 - 08:20 | 431165 Careless Whisper
Careless Whisper's picture

i hope none of you are surprised by another gang rape by a big corporation. i've been saying for weeks that bp has deep political connections, second only to goldie. they should be called Bilderberg Petroleum. after the wh deal i said that the central bankers would secretly end up buying the bp paper, and people thought i was silly. oh really. just watch.

 

Thu, 06/24/2010 - 01:27 | 430887 Cheeky Bastard
Cheeky Bastard's picture

Wrong CP; think JPM [London subsidiary most likely] and DB. Thy are known to enter into such "trades"; even-though the volatility in the spread could have easily presented an opportunity for GS to hedge any unhedged long position in BP debt. Selling at 600 and buying at 500 to lock in the profits. AIG 2.0 or is it LEH 2.0, whatever. The thing I want to say with this incoherent comment is; sure, GS was selling into the widening; but it wasnt alone doing that.

EDIT:

With the recent CDO offering i wouldn't be surprised if you see a CDO2 being marketed in the next 2 months compromising solely of APC, RIG and BP CDS.

Thu, 06/24/2010 - 03:06 | 431001 jeff montanye
jeff montanye's picture

thanks for your insight.

Thu, 06/24/2010 - 01:18 | 430888 AssFire
AssFire's picture

Nothing better than another state run industry to compete on an uneven playing field where there are no losses but only profits. RIP private Oil industry, we will put your headstone  next to the insurance (after you are demonized further by the thin skinned cockroach residing in the Whitehouse).

Thu, 06/24/2010 - 01:29 | 430904 Caviar Emptor
Caviar Emptor's picture

Right on, comrade. Soon all people be vorking for national power company. 

Thu, 06/24/2010 - 04:17 | 431033 Popo
Popo's picture

Actually it's worse than that:  Soon all people will be working (unpaid) for a private power company.

Bailing out private entities with our taxpayer dollars is a fancy way of saying: We are slaves.

The modern version of slavery is the same as the old version, but we insert a few extra financial transactions (ie: taxation + bailouts) to preserve the illusion of freedom.

Socialism is a terrible, intrinsically broken system -- but it beat the shit out of serfdom.

The only real answer is to let the TBTF's fail, and take the pain.

 

 

 

 

Thu, 06/24/2010 - 07:52 | 431138 weinerdog43
weinerdog43's picture

I junked you for your mischaracterization of socialism.  What you are describing is anything but socialism.  Not a defense of socialism per se, but what you are describing is fascism.

Thu, 06/24/2010 - 08:41 | 431193 MsCreant
MsCreant's picture

Thanks for at least saying why you junked after junking. So many don't.

Thu, 06/24/2010 - 02:33 | 430974 BumpSkool
BumpSkool's picture

You may recall that from inception until the oil crisis of 1970s Oil Majors paid NO TAX at all, because they had written the legislation that allowed them not to. Then, under the oil depletion allowance they paid significantly less tax than a similar corp. The also had government funded wars to open up Ex+Prod. markets all during the pre and post-WW II era ... so its hardly like these entities have ever been truly "private" ... Privileged certainly... but hardly "private"

Thu, 06/24/2010 - 03:18 | 431007 cranky-old-geezer
cranky-old-geezer's picture

"... no losses but only profits."

Hmmmm.... where can I sign up for that?

Taxpayers are the bottom of the food chain. 

Plankton whining about being plankton.

 

Thu, 06/24/2010 - 01:20 | 430894 williambanzai7
williambanzai7's picture

Tsunamis, Katrinas and TBTF. These are the new buzzwords for the new kleptocracy.

Thu, 06/24/2010 - 01:26 | 430899 AssFire
AssFire's picture

BP has not put up the 20 billion, we did BP put their US assets up to cover the loan. They will contribute only 5 billion this year, then 2.5 billion a year thereafter. But don't worry they will have 500  to 800 million coming in from our US Gov owned AIG, who insured Cameron's BOP and other related exposures. THIS BURNS MY ASS.

Thu, 06/24/2010 - 01:26 | 430900 Caviar Emptor
Caviar Emptor's picture

The great Roman historian Livy, lamenting the decay of the national character wrote: "These days....we can bear neither our diseases nor their remedies" 

Thu, 06/24/2010 - 01:38 | 430912 Rusty Shorts
Rusty Shorts's picture

 - i dismissed this post a couple of weeks ago, but the ranking general part...

http://www.youtube.com/watch?v=t5Br6TzjQxM

... - wrong thread, i know.

Thu, 06/24/2010 - 02:09 | 430959 Hephasteus
Hephasteus's picture

Easy to dismiss web bots. They are run by microsoft and the powers that be. They usually get shit completely wrong. What do you expect from microsoft. It took them windows 3.1, os/2 1.0 and windows 95 just to figure out how to print shit. Just because a retard with a lisp compiler and a huge net pipe thinks he can piece stuff together...

Thu, 06/24/2010 - 02:15 | 430962 Rusty Shorts
Rusty Shorts's picture

 - a blind chicken gets a kernel of corn every now & then.

Thu, 06/24/2010 - 02:56 | 430993 Hephasteus
Hephasteus's picture

Ya but it sucks trying to keep up with them knowing they bat .250

Thu, 06/24/2010 - 06:54 | 431099 I need more asshats
I need more asshats's picture

I think the webots are condensing and vaporizing.

Thu, 06/24/2010 - 05:36 | 431065 russki standart
russki standart's picture

I wouldn´t dismiss them out of hand. I´ve followed their work for a year and I believe that web bot guys are onto something.... They have made a number of astonishing predictions that have materialized in some form or another, and are getting better all the time. I would not, however, use them to guide my investment decisions.

Thu, 06/24/2010 - 06:26 | 431086 Cognitive Dissonance
Cognitive Dissonance's picture

"I wouldn't dismiss them out of hand."

I agree. The web bots are simply robots trolling for information. It's up to the human programmers to determine what information they should collect and how it should be handled.

As I continue to study the collective conscious, I'm coming to conclusions that validate the concept used by the web bots. As my articles have proffered, if the collective conscious creates our reality (if we create of reality) it then would make sense to try to discern or predict the coming reality because reality forms when certain critical masses come together or begin to peak. The bots are simply looking for those signs.

I'm not being insulting here but I've found that people with rigid world views and belief systems (which is what I was and struggle to remove) have a difficult time interpreting the web bot findings. It requires pulling information from many sources into forms composed of flexible connections, which in turn requires an extremely flexible belief system. Many people are simply too frightened to abandon their strongly held rigid views. I was for many decades and still struggle with it. For many, it's all they have.

Thu, 06/24/2010 - 07:59 | 431144 Careless Whisper
Careless Whisper's picture

rigid views and trading/investing are a bad combination. the market will talk to us and if our view is wrong its best to admit it quickly. but that may be easier said than done.

A great many smashes by brilliant men can be traced directly to the swelled head — an expensive disease everywhere to everybody, but particularly in Wall Street to a speculator.

 

Thu, 06/24/2010 - 08:50 | 431201 cougar_w
cougar_w's picture

Fish don't know what water is.

Like fish, the human monkey mind "swims" in a sea of interactions and impulses we cannot see with our mind's eye. We are accomplished at navigating nuance and agenda, so much so that we no longer know that we are doing so.

And yet, we talk about almost nothing else. In casual ways that we don't even notice, we discuss what is real and what is important. The murmur of our thinking ripples outwards as we covertly share ideas and moods. Like foreign winds carrying the scents of distant flowers and cookfires, we sense even the remote thoughs and concerns of peoples we'll never meet, in lands we'll never visit.

I cannot explain it properly, our language lacks the proper constructs. But I understand it. We are masters of the whispered world of the liquid meme. It is like water. It is not like water. It is like water that isn't there. It is like the previous three sentences held in the mind at once. Except that it isn't.

I am of the Tribe of the Long Whiskers for whom proper sense is an artform. I sense what this water is. I sense too that something bad happened a long time ago. Nobody notices but we've been talking about it for a long time. We talk about it every day. We don't know what to do, or at least, we didn't know.

I suspect that we are very near doing something about the bad thing that happened.

I did something as soon as I knew what to do, as right-doing is the responsibility of my tribe, and now I merely wait. Sitting back and watching, these curious monkeys are ready to decide for themselves, to seize the moment, to make things right.

It's been along time coming but that's just how one deals with matters that one cannot properly see. You swim a long time before you arrive at the edge of the infinite sea of thoughts, where you can then look back and see all that water at last for exactly what it was.

Then be delighted for it is true magic.

Thu, 06/24/2010 - 09:14 | 431225 Turd Ferguson
Turd Ferguson's picture

Agreed. Sometimes the bots produce interesting results. However, having "Joe" report the results, directly from his laundry room without, apparently, bothering to shower for the last few days, does seem to detract from the credibility of the information.

Thu, 06/24/2010 - 10:10 | 431298 Pope Clement
Pope Clement's picture

Fucking A brother ! Dominus Vobiscum and as St. Wilson (R.A.) remarked 'belief systems make you stupid'

Thu, 06/24/2010 - 01:37 | 430913 superuser
superuser's picture

Wow, so in other terms, the government has outsourced many of its key responsibilities to third parties w/o: 1) making sure people's (peoples'--rhetorical) interests are strongly aligned; and, 2) having "SLAs" (Service Level Agreements) in place or relatively painless way of bringing this back "in-house," i.e., "in-sourcing."

To this plebe, first, the financial svcs sector exposed...now, energy...don't get me started on shelter and education (long since...)...what next, food? The last few true raw inputs...water and oxygen (TPTB working hard on both?)...long beans (guessing) and other high calorie/investment products...

Thu, 06/24/2010 - 01:43 | 430920 superuser
superuser's picture

...before you all jump all over me, I realize that, for certain issues, there is a complicated (yet, simple) way to trace the money flows such that interest alignment can be mapped whereby things will be made more obvious...

Thu, 06/24/2010 - 01:51 | 430935 carbonmutant
carbonmutant's picture

The key priority here is that the current administration needs to have someone to blame for their errors in judgement...

Thu, 06/24/2010 - 03:21 | 431008 cossack55
cossack55's picture

Food? Check out Monsanto's recent "wins" in the courts (I would have said our courts, but that was a long time ago).

Thu, 06/24/2010 - 01:40 | 430914 CustomersMan
CustomersMan's picture

 

 

 

Just a head's up. Various sites that are updated every hour, without fail, are down since 2:00 pm yesterday.

 

Would advise that all be on high alert for news from middle east.

Read. Over?

Thu, 06/24/2010 - 01:49 | 430932 Rusty Shorts
Rusty Shorts's picture

 - really...

http://www.youtube.com/watch?v=EnSauj2855M&feature=related

 - clinton attacks iraq```U.N. weapons inspectors called "UN SCUM"

http://www.youtube.com/watch?v=ENAV_UoIfgc&feature=related

 

 

Thu, 06/24/2010 - 05:39 | 431069 russki standart
russki standart's picture

Nothing will happen until after the G20 conference in Toronto June 26th and 27th.

Thu, 06/24/2010 - 07:04 | 431103 I need more asshats
I need more asshats's picture

Roger. Over.

11:00am Zulu. Thursday. Threat level escalates to Severe(red)? Over.

Thu, 06/24/2010 - 01:43 | 430918 Testicular Cancer
Testicular Cancer's picture

Two car companies, two mortgage companies, an insurance company, about 5-6 banks, & now an oil company. Is this a trend?

Thu, 06/24/2010 - 02:46 | 430990 Problem Is
Problem Is's picture

Yes a Trend Captain Kirk...
TBTF Banks and corporations are just a tool by which the oligarchy loot the Amerikan tax payer via bailouts...

Commenters on this blog complain 50% of Amerikans don't pay Fed income tax yet neither do 50% of the Fortune 500...

Which same said commenters always fail to admit...

BTW: Nice rug Jim...

Thu, 06/24/2010 - 01:51 | 430936 vs18
vs18's picture

Truly pathetic if it gets TBTF status

Thu, 06/24/2010 - 01:58 | 430944 Apostate
Apostate's picture

This is insufficient. We must also nationalize several tranny porn companies - or the SEC will be unable to do its job properly.

How exactly are the proud men and women of the SEC supposed to do their jobs without a secure supply?

Thu, 06/24/2010 - 02:39 | 430983 Rusty_Shackleford
Rusty_Shackleford's picture

"Tube8.com is not only vital to the nationwide rubbing out of knuckle children, but to our national security and the fragile economic recovery as well."  

Thu, 06/24/2010 - 05:17 | 431052 michael63636
michael63636's picture

They are in cahoots with the IRS auditors.

Thu, 06/24/2010 - 01:59 | 430945 Caviar Emptor
Caviar Emptor's picture

Yes folks, we are slowly descending into a cyberpunk world, as the original authors rightly predicted. A world dominated by entrenched corporatocracy which effectively replaces traditional government. There is no free trade or open politics, only large conglomerates which self-perpetuate by keeping the masses permanently entranced in their commercialism and repressed using ubiquitous prying information technology. Only a few brave isolated renegades survive, beaming their pirate signals over the net, trying in vain to wake the masses up.

Thu, 06/24/2010 - 02:04 | 430952 dcb
dcb's picture

The article should have cited this article:

http://www.zerohedge.com/article/bps-bankruptcy-would-impair-117-18-total-collateralized-synthetic-obligations-lead-pervasive

you already told us it was too big to fail

Thu, 06/24/2010 - 02:04 | 430953 CustomersMan
CustomersMan's picture

 

 

Again, something is cooking, and it's not in Denmark.

 

All that change with McCrystal and Petraeus may have been a distraction.

 

 

Would stay very alert for sudden changes. Advise?

Thu, 06/24/2010 - 02:07 | 430957 Akrunner907
Akrunner907's picture

Let them keep doing all these rescues and inflating the too big to fail concept and that will just push us faster to an economic collapse.  Then it will be all about guns and butter.

Thu, 06/24/2010 - 02:20 | 430966 Edmon Plume
Edmon Plume's picture

All you need to know about how screwed up America is:  British Petroleum "is the largest oil and gas producer in the U.S.,..."

WTH?

Thu, 06/24/2010 - 02:21 | 430967 ED
ED's picture

Whoa! Wait a minute. Nobodies talking about something failing - just transfering the assets to new, competent, ownership. What's all the hoo ha?

Thu, 06/24/2010 - 03:24 | 431009 jeff montanye
jeff montanye's picture

yes indeed.  it is so much malarky and utter disingenuousness.  the banks weren't going to "fail".  they were going to be recapitalized with shareholders wiped out and bondholders taking a buzz cut.  too bad so sad.  it's called risk and return.  but ohhh noo!   political fix too strong so this horrid, horrid administration (following the wretched, wretched prior one) continues as a govt of men not laws (maximizes graft and bribery) and we have tbtf.  thanks.

Thu, 06/24/2010 - 05:30 | 431058 AnAnonymous
AnAnonymous's picture

Laws are enacted by men.

When men cannot afford the cost of enacting the law, what happens?

 

Too big to fail is a status brought by competition, not government or law.

Too big to fail can happen at all levels in a competitve environment.

A small firm owner can be too big to fail (for its relative group)

A small firm employee can be too big to fail (for its relative group)

The only difference here the smal firm itself is not too big to fail compared to the rest of the society/world.

 

Thu, 06/24/2010 - 02:22 | 430968 CustomersMan
CustomersMan's picture

 

 

ZH, anybody notice anything unusual about speed and delivery at certain 'net news sites?

Is an attack possible, on Iran and possibly others?

 

Maybe I'm paranoid.

 

My left ball is low and signaling an alert. Then again it could be just a buildup.

Thu, 06/24/2010 - 02:32 | 430975 Apostate
Apostate's picture

Lay off the meth. You'll know if anything goes down. 

Thu, 06/24/2010 - 02:24 | 430969 waylon153
waylon153's picture

The Squid ties up the loose ends better than episodes of Seinfeld.  Someone take Blankfien's mask off and tell George to grab the marble rye bread.  Does this mean Timmy is really Kramer?  And, Robert Rubin really Jerry?  Serenity now, serenity now!!

Thu, 06/24/2010 - 02:34 | 430978 StarvingLion
StarvingLion's picture

Meh, corporate oil and TBTF is so prehistoric.  I prefer a molecule to treat Alzheimers.  Then I'll own everyone's brain.  Then I'll ensure you're Too Mental To Fuck (TMTF) 

Thu, 06/24/2010 - 02:34 | 430979 yabs
yabs's picture

disgrace

so basically any companies demise which HURTS goldman sachs is TBTF?

Fascism strikes again

all heil Blankfein

BP is a pathetic company and thats why in the industry they are known as b(ig) P(ricks)

Its time for revolution against this BS

Thu, 06/24/2010 - 02:58 | 430995 Problem Is
Problem Is's picture

Fascism strikes again... All heil Blank-dick-fein

Goldman Goldman  über alles,
Über alles in der Welt,
Von der Abacus bis an die Timberwolf,
Und zu edler Tat begeistern.

Sind des Glückes Unterpfand,
Blüh' im Glanze dieses Glückes,
Goldman Goldman  über alles,
Über alles in der Welt.

Thu, 06/24/2010 - 03:24 | 431010 cossack55
cossack55's picture

Sehr gut!

Thu, 06/24/2010 - 07:40 | 431120 SWRichmond
SWRichmond's picture

Bankerlied:

Whether it's bulls or bears
Whether the Fed shines on us
SPY's burning hot
Or TNX freezing cold
Drawn are our faces
But happy we are at Goldman
We're at Goldman
Our bonus roars ahead
Along with the storm wind

With smoldering computers
Fast as a backbone trade
The enemy engaging
With our frontrunning Supplemental Liquidity Providers
Come on comrades
In the battle, all alone
We stand all alone
That's how we make profit
With our Congress, our Regulators, and our White House

When an enemy short
Appears ahead of us
Full liquidity is given
And we close with the foe
What value then is their trade
To the owners of our nation
Yes owners of our nation
For to game Wall Street
Is the bankers' highest honour

With bond vigilantees
The enemy blocks our path
We laugh about it
And simply ignore them
And if we are threatened by investigations
Coming from the Internet
From the Internet
We find ourselves a dark pool
That no one else found

And if we are abandoned
By that unfaithful trade
And if we don't return
To the Hamptons again
If a dollar run strikes us down
If margin calls upon us
Yes margin calls upon us
Then for us the bank will be
An honorable grave

Thu, 06/24/2010 - 07:37 | 431116 SWRichmond
SWRichmond's picture

They were pumping BP stock on CNN yesterday afternoon...on the regular news program.

Thu, 06/24/2010 - 03:30 | 431013 AnAnonymous
AnAnonymous's picture

Once again, introducing too big to fail as a vision of mind.

Too big to fail status exist. It is brought by competition.

Maybe BP is too big to fail. Maybe it is not.

But telling the press says BP is too big to fail is not enough.

I'd prefer some analysis to either state they are not too big to fail or are too big to fail.

Thu, 06/24/2010 - 03:33 | 431015 dan22
dan22's picture

We are in a classic The Road To Serfdom- But In Cartoons!

This too big to fail thing is making me sick. What about the too big to save( i.e the U.S government)!

Thu, 06/24/2010 - 05:31 | 431061 AnAnonymous
AnAnonymous's picture

Too big to save? What does it mean?

 

Thu, 06/24/2010 - 04:24 | 431036 Gary Busey
Gary Busey's picture

knucks dudes...

Thu, 06/24/2010 - 04:36 | 431039 bluewarrior
bluewarrior's picture

Here is my read of the situation:

The govt. is smart and realizes that most people don't know nor cannot accept truth.....hence to run the country effectively, you need to maintain public opinion by creating a veil of agressive behavior.

I think that the extent of the leakage issue would be known to the govt. right from the start. The reason it kep putting up a hollow drama and no actionables for long was because they did not have a good fix on how to solve the problem. But once it became clear that the problem would come under control they stepped up the initiative to score points with the masses.

It's this line of thought which makes me think that BP will escape this situation much better than what is currently being touted. The day the president stepped up the pressure, I went long on BP. And I added more when the $20 billion fund was created (which to me looks like a liability limitation excercise).

I think the govt's handling of the situation has been brilliant............

 

Thu, 06/24/2010 - 05:02 | 431048 cossack55
cossack55's picture

No doubt.  Reminds me of the Reichstag fire.  Roasted many a Wurst that night.  Ach, the good old days. 

Thu, 06/24/2010 - 04:58 | 431047 theprofromdover
theprofromdover's picture

BP will not fall *. Catastrophic as GoM is, in the big picture it is merely the 'worst' ecological disaster. Not to belittle the impact of it, but Saddam's burning of Kuwaiti oilfields, Pinatubo, Mt St Helens, Tsunami, etc. all recovered somewhat over time.

* Only with complete complete stupidity across the board -by Obama, BP management, the MSM, and the Banks- could BP trip itself up into receivership.

Look at its assets for crissakes. All they would need to do is manipulate the price per barrel back up $100 and their financial problems disappear again. (Strangely enough, I know some people in South Manahattan who know how to do just that.)

 

Thu, 06/24/2010 - 05:04 | 431050 cossack55
cossack55's picture

At $200/Bl the problems would disappear twice as fast.  Darn good point and something to watch.  Maybe include viable threat to Iran (11 US ships) and threat to closing the Straits to reinforce the social meme.  Scary.

Thu, 06/24/2010 - 05:57 | 431081 breezer1
breezer1's picture

lets look again after hurricane season shall we.

Thu, 06/24/2010 - 05:35 | 431064 bingaling
bingaling's picture

Watch yourself Tyler .Reporting the truth might make you have an apparent suicide with a glock or have a deadly swimming pool accident . Can you imagine the gov't trying to tell people watching this catastrophe that they must save the corporation which is murdering them with noxious gases . Basically that is what this amounts to .

Thu, 06/24/2010 - 09:11 | 431221 MsCreant
MsCreant's picture

trying to tell people watching this catastrophe that they must save the corporation which is murdering them with noxious gases . 

This is certainly my take away from this post. This is like a sick experiment is masochism or learned helplessness. How hard and painfully can we fuck them? Lets see...

Thu, 06/24/2010 - 05:39 | 431068 Tic tock
Tic tock's picture

Check out the changes to the weather and try that 'Oil disasters have a way of panning out okay' again. This isn't it's geting too hot or too cold, but biodiversity is getting cooked, crops are risky commodities and if water was a problem before, now what is it? The cost of the remedies is something I don't think anyone wants to throw money at but there's no choice; while throwing money at propping up TBTF is a the no.1 choice - meanwhile - where the hell is the economy going? State offers shareholders a leg up while Unemployment increases are dramatic... cart pulling the horse? If BP, a virtual state in its own right, doesn't have to pay for the mess they created, and self-insured themselves for, then why should I have to pay for something I do that causes a social problem? The government guarantees my right to liberty, that's what I pay taxes for. Does that mean that if cause a problem then the damages I owe are only those accountable on my assets at the time of judgement, as in claims on future assets are beyond jurisdiction, like my time? How can GM be dissolved and sold, while BP not? Pensions are screwed any way you look at them, when will the $100k-a-year govt. staffers get round to concentrating on the forest? Fuck me, if the systems broke, fix it...that's what we pay them for.

(I need to get laid)   

Thu, 06/24/2010 - 05:43 | 431072 michael63636
michael63636's picture

http://www.wikio.com/themes/Donald+Vidrine

Straw poll: cause of the leak Stoat (Free subscription) 06/11/2010

... Kaluza, refused to testify on the Fifth Amendment grounds that he might incriminate himself; Donald Vidrine, another BP representative, cited medical reasons for his inability to testify, as did James Mansfield, Transocean's assistant marine engineer on board.[219][220][221] On June 1, 2010 U.S. Attorney General Eric Holder announced that he has opened a criminal investigation of...

Thu, 06/24/2010 - 06:34 | 431089 doggings
doggings's picture

this is hilarious really isnt it. the higher their "fines" and claims against them, the bigger their bailout will need to be.

if anything will finally get the USA out with their pitchforks en masse,  footing the bill for bailing out BP after they've fucked you up so badly should do it?

 

Thu, 06/24/2010 - 06:51 | 431097 Thunder Dome
Thunder Dome's picture

BP will be a buy at $18.

Thu, 06/24/2010 - 07:18 | 431107 cossack55
cossack55's picture

It will be a better buy at $0.18, right above Fannie and Freddy and Illinois MUNIs.

Thu, 06/24/2010 - 08:06 | 431153 Chemba
Chemba's picture

I generally agree. BP shares are in a fourth wave triangle, completing "d" and should spike on a weak "e".  At that point look for a wave (5) working towards the $20 range, which is where I'd open a small position.

Thu, 06/24/2010 - 07:41 | 431123 Sean7k
Sean7k's picture

We are at the mercy of our government because we allow ourselves to be. We fail to educate our neighbors, our children, ourselves. The necessary prescription for America has been written ad infinitem by Bastiat, Cotillion, Mises, Rothbard Hayek and many others.

We complain because we lack the fortitude to act. The government and their handlers know this. They depend on it.

It is hard to lose the comforts this life can provide, but the comforts are slipping through our fingers and post generations will pay a price much greater. We have condemned our children and grandchildren by our cowardice in the face of tyranny.

We have to do nothing more than educate, withdraw from the FED system and create a free market- a black market with legal currency: treasury issued coins in gold and silver. Go local, invest local and recreate pastoral america. The government will fall from civil disobedience and neglect. Voting only gives them validity. 

America and other countries are strengthen by the core of their productive members. Their products, inventions and investments. They are bound in their capitalist/labor relationships that define their communities and create wealth.

If our government will not endorse minimum government ( and how can they?) then it must be thrust upon them. 

Thu, 06/24/2010 - 10:30 | 431363 Rusty_Shackleford
Rusty_Shackleford's picture

Well said.

Thu, 06/24/2010 - 08:03 | 431149 Chemba
Chemba's picture

What a ridiculous, ignorant premise.  A BP "bankruptcy" would simply be for the purpose of transfering future cash flows of BP assets from existing creditors and shareholders to recipients of the choosing of Messers Obama, Feinberg, Reid and Mrs Pelosi.

BP's assets and operations would continue to "operate", producing said cash flows, and its employees would continue "working" and collecting their pay.

The financial media is really pathetic and ignorant.  I can excuse (sort of) the NYT, the Washington Post, USA Today, NBC, etc. for being ignorant of corporate finance theory and practice, but I can not excuse the WSJ, Bloomberg, CNBC.

Thu, 06/24/2010 - 09:05 | 431216 cougar_w
cougar_w's picture

BP will be used as a conduit to funnel public money into GoM states. Without BP, Obama would have to do that directly and it might be illegal. With BP, it's not a payout but a court-mandated "judgement for harms done."

I'm not judging this, just saying. The harms will prove to be stupendous, and will require public funds to correct, perhaps $1T over 10-15 years. In the end BP will be allowed to expire, but not before those accounts have been settled.

It is right that the payout be taxpayer dollars, for we have all profitted hugely from a century of harms created by our use of these resources. We have collectively grown hugely rich. The wealth generated by using oil as a resource probably top $100T. Then we screwed something up, now we have to pay. Fair enough.

But I wonder if the entire $100T in gains will eventually be forfeit. Karma has been known to work that way, sometimes.

Thu, 06/24/2010 - 09:47 | 431261 MsCreant
MsCreant's picture

 

BP = AIG = ZOmbIe feast

I see BP (body parts) suspended, splayed, with IV tubes running out to the other major corporations. They are quite fat. I see other IV tubes running in, fed by pale skinny emaciated tax payers who can just barely be seen, laying prone, in a back room. Naturally, the plump, robust corporations complain they need more. Obama takes out his whip, and heads to the back room...

 

Thu, 06/24/2010 - 12:42 | 431607 cougar_w
cougar_w's picture

I liked. It was sick, but I liked.

Thu, 06/24/2010 - 09:05 | 431217 the not so migh...
the not so mighty maximiza's picture

TBTF for BP is a deal with the devil.  They opened something up they cannot stop.  It is an unknown if they can stop it.  You cannot compair this leak with anything else.  If the US goverment takes over BP and after 1 year of leaking oil it starts washing up on the beaches of France and Australia, there will not be enough trees to print the US money to fix this problem.   I hope they can plug it this year, but who knows.

Thu, 06/24/2010 - 09:31 | 431245 pods
pods's picture

Of course BP will be TBTF.  But, they will have to assure the amerikans that this type of thing will not happen.  With legislation.  And new rules in that legislation will prevent this, among other things it will do*.

*Hint:  The end game is based in Chicago and all the big boys have a piece of it.

pods

Thu, 06/24/2010 - 09:42 | 431253 Thoreau
Thoreau's picture

Won't happen; this disaster is way too hot to handle. BP will simply be sold off; jobs saved; "punishment" meted out. No brainer.

Thu, 06/24/2010 - 10:03 | 431288 Cursive
Cursive's picture

If Enron could die, anybody can die.  When Enron went down, did nat gas stop flowing?  No.  Did electricity stop flowing?  No.  And what's with all of this U.S. foreign relations talk?  BP has U.S. operations to be sure, but it is a UK company.  I don't think BP exists to help the U.S. or the U.K.  It exists for the ruling elite, the TPTB.  BP should fail.  Then something better can come along.

Thu, 06/24/2010 - 12:47 | 431617 cougar_w
cougar_w's picture

Enron died in 2001. It was a good thing.

Fast forward to 2008 and the world is ending, and nobody is allowed to die.

It is not a good thing, but it is how they are playing it.

Thu, 06/24/2010 - 12:07 | 431538 Tartarus
Tartarus's picture

I don't think it is politically possible for anyone to bail out BP. The Dems would lose the next election guaranteed if they tried to bail out a foreign company for this huge mess. The U.K. certainly doesn't have the resources to bail out BP so I'm not so sure anything will be done.

Do NOT follow this link or you will be banned from the site!