Now that people have time to sit back and digest the overall scenario surrounding the BP (NYSE:BP), some are raising questions as to whether or not the relationship between BP and the U.S. government was too cozy.
Others feel like the government should have been much tougher on them, but I don't see how that could have constructively helped in any way.
The time for toughness is later when things are settled down and the disaster under control. To attack and bully when people are attempting to take care of the issue makes no sense whatsoever.
Who was going to stop the flow of oil other than BP, and who could afford to do that other than a very small number of companies in the world.
The idea of the government using taxpayer dollars when taxpayers are already outraged over out-of-control government spending wasn't an option.
As far as communication, how could that happen unless they were close enough to communicate immediately concerning conditions as they unfolded?
If BP, and possibly others, are to pay for the mess, the only way they can do it is if they survive. Insurance money wouldn't cover it, and if they were pushed too hard they could go the bankruptcy route, and everyone would have lost.
This is simply one of those times where the accident demanded the circumstances to be what they were, and the closeness between the U.S. government and BP a necessity.
Even now when people are question the $20 billion escrow fund to pay claimants, questions are being raised as to the parameters included with it. But BP doesn't have a central bank like the government, where they can print money and have generations of the future hopefully be able to pay for it.
There are limits, and those limits demand parameters. There's no way of getting around that; at least if we want BP to be able to pay as much as possible and take care of those directly related to the incident.
Showing posts with label BP Bankruptcy. Show all posts
Showing posts with label BP Bankruptcy. Show all posts
Monday, August 23, 2010
Wednesday, July 14, 2010
Oil Spill Means Less Taxes for BP (NYSE:BP)
Although BP (NYSE:BP) is suffering some financial pain from the Gulf of Mexico oil spill, it's going to be alleviated a lot by the shrinking tax burden they will have to pay as a result of the growing number of pay outs linked to claims of damages from businesses and individuals.
Not only will this be true in the U.S., but it'll also be true in Britain too.
In the U.S., BP paid taxes at a 33 percent rate. Assuming that will be the same this year, they could not only save billions in taxes for the year, but they could save on past taxes if they experience losses.
What will probably end up stirring some people up is while BP will be getting tax breaks, that will be made up on revenue from taxes from the people and businesses receiving the payouts from BP, as receiving the BP money is considered a taxable event.
Overall this isn't a bad thing for BP, as the healthier they are financially the better they'll be able to pay out cleanup costs, claims and judgements against them, without declaring bankruptcy.
As far as the $20 billion escrow fund, that won't be deductible for BP until they pay out specific funds from it to claimants. So the approximate $5 billion they pay a year over the next four years won't be tax deductible for them until the actual claims are paid.
Not only will this be true in the U.S., but it'll also be true in Britain too.
In the U.S., BP paid taxes at a 33 percent rate. Assuming that will be the same this year, they could not only save billions in taxes for the year, but they could save on past taxes if they experience losses.
What will probably end up stirring some people up is while BP will be getting tax breaks, that will be made up on revenue from taxes from the people and businesses receiving the payouts from BP, as receiving the BP money is considered a taxable event.
Overall this isn't a bad thing for BP, as the healthier they are financially the better they'll be able to pay out cleanup costs, claims and judgements against them, without declaring bankruptcy.
As far as the $20 billion escrow fund, that won't be deductible for BP until they pay out specific funds from it to claimants. So the approximate $5 billion they pay a year over the next four years won't be tax deductible for them until the actual claims are paid.
Friday, June 25, 2010
BP (NYSE:BP) Stock Hits 14-Year Low - Losing about $100 Billion
Since the April 20 explosion on the Deepwater Horizon oil rig, BP (NYSE:BP) has lost over $100 billion in market capitalization, as it dropped to a 14-year low on Friday.
So far the oil giant has spent about $2.35 billion on the cleanup, and those numbers will continue to skyrocket in the foreseeable future.
Bankruptcy talk continues to swirl about in the media, as the numbers continue to add up concerning potential liabilities, which in a number of scenarios would be unsustainable as far as BP being able to pay them.
The high estimates at this time are at about $100 billion as to how much BP could take on.
Today a spokesman for BP said they have the resources to handle the costs, but the reality is it'll depend upon what scenario plays out going forward.
So far the oil giant has spent about $2.35 billion on the cleanup, and those numbers will continue to skyrocket in the foreseeable future.
Bankruptcy talk continues to swirl about in the media, as the numbers continue to add up concerning potential liabilities, which in a number of scenarios would be unsustainable as far as BP being able to pay them.
The high estimates at this time are at about $100 billion as to how much BP could take on.
Today a spokesman for BP said they have the resources to handle the costs, but the reality is it'll depend upon what scenario plays out going forward.
Will BP (NYSE:BP) Be Bailed Out?
The growing claims, liabilities and cost related to the Gulf of Mexico oil spill, generates the possibility that BP (NYSE:BP) may end up being bailed out using taxpayer dollars if it is to survive, or be able to pay for its responsibilities.
Most Americans would be 100 percent against that, and it's also a question of legality concerning a foreign-based company. But bailouts can be hidden in bills, when you define a bailout as using taxpayer money to prop a company up.
Congressman Ron Paul has stated this has already happened, saying an "'upcoming supplemental bill for Gulf cleanup costs' already has "a large sum of taxpayer money' slipped into it."
One has to start wondering if the Obama administration is demonizing BP to the point where the costs are so high they'll have to declare bankruptcy, and/or be rescued in some way with taxpayer dollars.
The numbers mounting up concerning what they would have to pay out are getting so high, it's hard to see how they'll be able to come close to paying it all out.
Is this a move by the Obama administration to take charge of another major industry in America? They already have their banking pay czar heading up the $20 billion escrow fund from BP.
At this time it's doubtful if a bailout would come in the straight manner as it did in the banking, insurance and auto industries. More than likely, as Ron Paul said, it'll be slipped in here in there in a manner taxpayers won't see it.
If that's how things proceed, it'll eventually be caught onto, and we need to be more diligent than ever to see to it we're not the ones caught holding the BP bill.
Most Americans would be 100 percent against that, and it's also a question of legality concerning a foreign-based company. But bailouts can be hidden in bills, when you define a bailout as using taxpayer money to prop a company up.
Congressman Ron Paul has stated this has already happened, saying an "'upcoming supplemental bill for Gulf cleanup costs' already has "a large sum of taxpayer money' slipped into it."
One has to start wondering if the Obama administration is demonizing BP to the point where the costs are so high they'll have to declare bankruptcy, and/or be rescued in some way with taxpayer dollars.
The numbers mounting up concerning what they would have to pay out are getting so high, it's hard to see how they'll be able to come close to paying it all out.
Is this a move by the Obama administration to take charge of another major industry in America? They already have their banking pay czar heading up the $20 billion escrow fund from BP.
At this time it's doubtful if a bailout would come in the straight manner as it did in the banking, insurance and auto industries. More than likely, as Ron Paul said, it'll be slipped in here in there in a manner taxpayers won't see it.
If that's how things proceed, it'll eventually be caught onto, and we need to be more diligent than ever to see to it we're not the ones caught holding the BP bill.
BP (NYSE:BP): Bankruptcy a Reality?
As the lawsuits mount and Obama and his administration don't seem to understand BP (NYSE:BP) isn't the Federal Reserve (just can't print money to cover everything), the growing possibility of them going bankrupt increases.
For a time it didn't seem to be a probability, as many kept pointing to how much money the company was generating. But starting with the misguided and coercive methods used to force BP into creating the $20 billion escrow fund, it's all been downhill, and people and institutions are increasingly emboldened to take steps they may not of otherwise taken.
That was especially true after the new escrow czar Ken Feinberg stated he'll error on behalf of claimants in order to get money out quicker. In other words, people and businesses could be paid far more than they are owed in order to move things along. Another reason BP should have never agreed to it.
What happens when the fund runs out after Feinberg's spending spree? He'll come knocking on the door again for BP to put up even more money.
Beyond that, now a New York State pension fund has sued BP, and there will be more of those types of lawsuits to follow. That lawsuit is based upon the fund losing money because BP's share price has fallen. That's being presented under the guise that BP hid from the pension fund that they couldn't handle a major disaster.
The liabilities and lawsuits are becoming an epidemic and not a realistic response from wronged people and businesses.
Politicians, economists, and some analysts, have made assertions that BP can easily handle this and remain a strong and viable company. The problem is it's no longer true.
The problem with all the above saying these things is they're thinking like those used to having the Federal Reserve print out money in attempts to save the economy, banking system, insurance companies, auto companies, etc.
They need to quickly realize that BP doesn't have a printing press like the Federal Reserve, and if things are allowed to go too far, there will be a bankrupt BP which will seek protection in order to survive.
Daily estimates of liability costs continue to soar, and if some of the higher projections prove to be true, it's hard to see how BP could continue operations. In that case everybody loses, and only those in first to get their share of the early money will get anything out of it.
For a time it didn't seem to be a probability, as many kept pointing to how much money the company was generating. But starting with the misguided and coercive methods used to force BP into creating the $20 billion escrow fund, it's all been downhill, and people and institutions are increasingly emboldened to take steps they may not of otherwise taken.
That was especially true after the new escrow czar Ken Feinberg stated he'll error on behalf of claimants in order to get money out quicker. In other words, people and businesses could be paid far more than they are owed in order to move things along. Another reason BP should have never agreed to it.
What happens when the fund runs out after Feinberg's spending spree? He'll come knocking on the door again for BP to put up even more money.
Beyond that, now a New York State pension fund has sued BP, and there will be more of those types of lawsuits to follow. That lawsuit is based upon the fund losing money because BP's share price has fallen. That's being presented under the guise that BP hid from the pension fund that they couldn't handle a major disaster.
The liabilities and lawsuits are becoming an epidemic and not a realistic response from wronged people and businesses.
Politicians, economists, and some analysts, have made assertions that BP can easily handle this and remain a strong and viable company. The problem is it's no longer true.
The problem with all the above saying these things is they're thinking like those used to having the Federal Reserve print out money in attempts to save the economy, banking system, insurance companies, auto companies, etc.
They need to quickly realize that BP doesn't have a printing press like the Federal Reserve, and if things are allowed to go too far, there will be a bankrupt BP which will seek protection in order to survive.
Daily estimates of liability costs continue to soar, and if some of the higher projections prove to be true, it's hard to see how BP could continue operations. In that case everybody loses, and only those in first to get their share of the early money will get anything out of it.
Thursday, June 24, 2010
BP (NYSE:BP) and Cost of Clean Water Act
The accurate measurement of the amount of oil flowing in the Gulf is vital to BP (NYSE:BP) (LON:BP), as for every barrel of oil that leaks into the waters, they could be fined $4,300, according to Clear Water Act penalties.
What determines whether or not BP will be fined is if they are charged with gross negligence. If so, the fine could be imputed on them, although if it got so costly they couldn't afford to pay it, it would be irrelevant, and could drive them to bankruptcy.
Assuming the upper end of government estimates of 60,000 barrels a day being released into the Gulf, and capture rates of a little over 27,000 (at this time), that would leave about 33,000 barrels a day they could be fined for.
That means on a daily basis, the cost to the company could be over $142 million, and that doesn't include the $20 billion in the escrow fund or any litigation costs.
The cost of doing business has skyrocketed as well, with insurance and credit default swaps surging in price.
As a growing number of people are realizing, a lot of the outrage needs to be contained, and if the only focus is to extract as much as they can from the company, there will be no company left to pay it.
It is in the best interests of everyone for BP to survive and thrive, otherwise they won't be able to handle the costs related to the disaster.
What determines whether or not BP will be fined is if they are charged with gross negligence. If so, the fine could be imputed on them, although if it got so costly they couldn't afford to pay it, it would be irrelevant, and could drive them to bankruptcy.
Assuming the upper end of government estimates of 60,000 barrels a day being released into the Gulf, and capture rates of a little over 27,000 (at this time), that would leave about 33,000 barrels a day they could be fined for.
That means on a daily basis, the cost to the company could be over $142 million, and that doesn't include the $20 billion in the escrow fund or any litigation costs.
The cost of doing business has skyrocketed as well, with insurance and credit default swaps surging in price.
As a growing number of people are realizing, a lot of the outrage needs to be contained, and if the only focus is to extract as much as they can from the company, there will be no company left to pay it.
It is in the best interests of everyone for BP to survive and thrive, otherwise they won't be able to handle the costs related to the disaster.
Tuesday, June 15, 2010
BP (NYSE:BP) Bankruptcy Irrelevant to Americans
While the results of a new Gallup/ USA Today poll unsurprisingly revealed Americans don't care if paying the costs of the cleanup drives BP (NYSE:BP) to bankruptcy, it unfortunately shows their cluelessness as to the consequences if they do.
If BP goes to bankruptcy, overall there will be no more payout, as they'll be protected from their creditors, which at this time is everybody affected by the Gulf oil spill.
A healthy BP is a necessity for the process to go forward and damages to be taken care of. And Americans also are considering the cleanup aspects and costs, which BP must have the capital to deal with.
In another finding of the poll, about 70 percent of American don't believe Obama has been tough enough on BP, although attempting to appear and act too tough has backfired, so that's somewhat of a catch-22 for Obama, who must walk a fine domestic and international line when dealing with the situation.
If BP goes to bankruptcy, overall there will be no more payout, as they'll be protected from their creditors, which at this time is everybody affected by the Gulf oil spill.
A healthy BP is a necessity for the process to go forward and damages to be taken care of. And Americans also are considering the cleanup aspects and costs, which BP must have the capital to deal with.
In another finding of the poll, about 70 percent of American don't believe Obama has been tough enough on BP, although attempting to appear and act too tough has backfired, so that's somewhat of a catch-22 for Obama, who must walk a fine domestic and international line when dealing with the situation.
Fitch Says No BP (NYSE:BP) Bankruptcy
Fitch Ratings, which downgraded BP by six notches - from AA to BBB today, said while there could be more downgrades and further financial pressures on the company, they don't expect the company to have to go into bankruptcy protection.
Some of the concerns of Fitch are financial claims growing much larger than they are now, pressure to pay out much quicker than the oil giant has been, and their access to capital in that environment.
Now that the company has been downgraded to BBB, cost of debt will rise, and it'll be harder to get the capital needed to continue operations and pay out liabilities.
This is the problem with Obama's rhetoric, which while pandering to his base, also creates the type of atmosphere which demands things to be done immediately, even though it does more harm than good in the long term.
Some of the concerns of Fitch are financial claims growing much larger than they are now, pressure to pay out much quicker than the oil giant has been, and their access to capital in that environment.
Now that the company has been downgraded to BBB, cost of debt will rise, and it'll be harder to get the capital needed to continue operations and pay out liabilities.
This is the problem with Obama's rhetoric, which while pandering to his base, also creates the type of atmosphere which demands things to be done immediately, even though it does more harm than good in the long term.
Monday, June 14, 2010
BP (NYSE:BP) Bankruptcy Fears Continue
Even though tensions were slightly eased between Britain and the U.S. over the BP (NYSE:BP) oil spill, which was taking on a more personal tone and attack from Obama and the Democrats, that doesn't deal with the underlying reason for bankruptcy concerns in the first place, which was the proposals that had been accompanying the Obama rhetoric.
The Democrats and Obama want to shut down the dividend of BP, and the latest, to have them create a $20 billion special account the Democrats can get their hands on, and who knows from there who they will decide to spend in the money on.
As far as the concerns over a possible bankruptcy, that is being primarily measured by, as it relates to the markets, to the number of puts being acquired, and they are skyrocketing as the share price of BP continues to plunge.
BP shares were at $31.50, as of 12:21 PM EDT, falling $2.47, a 7.27 percent decline.
The Democrats and Obama want to shut down the dividend of BP, and the latest, to have them create a $20 billion special account the Democrats can get their hands on, and who knows from there who they will decide to spend in the money on.
As far as the concerns over a possible bankruptcy, that is being primarily measured by, as it relates to the markets, to the number of puts being acquired, and they are skyrocketing as the share price of BP continues to plunge.
BP shares were at $31.50, as of 12:21 PM EDT, falling $2.47, a 7.27 percent decline.
Obama Lynching BP (NYSE:BP)?
Is the response of Obama and the Democrats going to end up destroying BP (NYSE:BP)? Some industry watchers think that is exactly what's happening, and have went so far as to call it a "lynch mob mentality."
Fadel Gheit at Oppenheimer & Co. in New York, said this, “The government has a lynch mob mentality,” said. It’s in nobody’s interest to bankrupt BP, but that’s what Obama is doing right now. Crippling BP is not going to make them clean the spill better.”
In that atmosphere, BP Chairman Carl-Henric Svanberg will visit the White House this week, while the day after, BP CEO Tony Hayward will testify before Congress concerning the disaster.
Some of the outrage from the opposite point of view is the notion BP should be forced to pay for the wages of workers that lost their jobs because of Obama's moratorium on drilling for oil in the region.
That, and Obama and the Democrats trying to force BP to suspend or eliminate their dividend is part of the lynch mob mentality that could end up driving the company to bankruptcy.
Fadel Gheit at Oppenheimer & Co. in New York, said this, “The government has a lynch mob mentality,” said. It’s in nobody’s interest to bankrupt BP, but that’s what Obama is doing right now. Crippling BP is not going to make them clean the spill better.”
In that atmosphere, BP Chairman Carl-Henric Svanberg will visit the White House this week, while the day after, BP CEO Tony Hayward will testify before Congress concerning the disaster.
Some of the outrage from the opposite point of view is the notion BP should be forced to pay for the wages of workers that lost their jobs because of Obama's moratorium on drilling for oil in the region.
That, and Obama and the Democrats trying to force BP to suspend or eliminate their dividend is part of the lynch mob mentality that could end up driving the company to bankruptcy.
Saturday, June 12, 2010
BP (NYSE:BP) Bankruptcy Plan Wanted by Louisiana State Treasurer
Even though BP (NYSE:BP) has stated they have no plans to go into bankruptcy, Louisiana State Treasurer John Kennedy has pushed for Louisiana officials to prepare for that scenario in case it happens.
Using inflammatory language, Kennedy said, "I know BP's said they won't go into bankruptcy. I hope they're telling the truth. They weren't truthful about the extent of the spill. We need to be ready, and I don't think we are. We can't miss a beat on this cleanup."
Kennedy saying that BP didn't tell the truth about the extent of the oil spill is a fabrication, to be kind. From the beginning they said it was an estimate, and recently confirmed there is no way of accurately measuring the flow of oil entering into the Gulf.
Even government scientists have covered their butts by saying the oil flow is from 20,000 barrels to 40,000 barrels a day. Which one is correct? If it's around 20,000, than the government scientists have lied, as they can't have it both ways using Kennedy's logic.
The scientists released these figures that are so far apart because they are also clueless as to how much oil is seeping into the Gulf on a daily basis.
As far as the bankruptcy goes, the same thing is being said. At this time BP, I believe, has no intention of declaring bankruptcy. But the amount of liability, just like the amount of oil, is unable to be estimated at this time, so while it is a possibility, all BP can do is assert their intentions concerning where things are at now, not somewhere a month or more down the road.
That's not dishonesty, that's dealing with the circumstance and it unfolds.
Using inflammatory language, Kennedy said, "I know BP's said they won't go into bankruptcy. I hope they're telling the truth. They weren't truthful about the extent of the spill. We need to be ready, and I don't think we are. We can't miss a beat on this cleanup."
Kennedy saying that BP didn't tell the truth about the extent of the oil spill is a fabrication, to be kind. From the beginning they said it was an estimate, and recently confirmed there is no way of accurately measuring the flow of oil entering into the Gulf.
Even government scientists have covered their butts by saying the oil flow is from 20,000 barrels to 40,000 barrels a day. Which one is correct? If it's around 20,000, than the government scientists have lied, as they can't have it both ways using Kennedy's logic.
The scientists released these figures that are so far apart because they are also clueless as to how much oil is seeping into the Gulf on a daily basis.
As far as the bankruptcy goes, the same thing is being said. At this time BP, I believe, has no intention of declaring bankruptcy. But the amount of liability, just like the amount of oil, is unable to be estimated at this time, so while it is a possibility, all BP can do is assert their intentions concerning where things are at now, not somewhere a month or more down the road.
That's not dishonesty, that's dealing with the circumstance and it unfolds.
Thursday, June 10, 2010
BP (NYSE:BP) Up Almost 13 Percent
Unless there are outrageous demands from the American government, BP (NYSE:BP) looks like it has a great change to survive this calamity, and investors think so too, as they drove the price of BP up by almost 13 percent today, almost recovering yesterday's plunge of 16 percent.
BP ended the session in New York at $32.78, gaining $3.58, or 12.26 percent.
That's a major, positive result when considering they lost about 50 percent of their share price since the oil spill began.
Rhetoric from the Obama administration and the perceived amount of liability have led some to wonder if BP can survive without going bankrupt, and calls from some ignorant American politicians to force BP into receivership took a toll on its share price recently as well.
Assuming BP can back up its assertion it should be able to almost completely stop the oil flow next week, that will probably cause the share price of the stock to rebound nicely, as they will then be able to focus on cleanup, instead of having video of the leak endlessly airing on the TV and Internet.
BP ended the session in New York at $32.78, gaining $3.58, or 12.26 percent.
That's a major, positive result when considering they lost about 50 percent of their share price since the oil spill began.
Rhetoric from the Obama administration and the perceived amount of liability have led some to wonder if BP can survive without going bankrupt, and calls from some ignorant American politicians to force BP into receivership took a toll on its share price recently as well.
Assuming BP can back up its assertion it should be able to almost completely stop the oil flow next week, that will probably cause the share price of the stock to rebound nicely, as they will then be able to focus on cleanup, instead of having video of the leak endlessly airing on the TV and Internet.
BP (NYSE:BP) Shareholders Fleeing Company
The growing uncertainty surrounding BP (NYSE:BP) has shareholders getter more nervous, as yesterday alone the company lost $82 billion in value.
Much of this is from speculators and traders shorting the stock, but even so, it's based upon a future for BP no one can predict, and that is what is primarily driving the share price down.
More worrisome for BP is the departure of shareholders, who they may have trouble getting back again for some time into the future, not knowing how far BP will fall, and if they will even survive as they are.
Early in today's session the stock plunged another 11 percent to land at a 13-year low in London.
At this time the estimates cost of the cleanup and liabilities are from $20 billion to $40 billion.
All of that is driving a growing number of investors away from the oil giant.
Much of this is from speculators and traders shorting the stock, but even so, it's based upon a future for BP no one can predict, and that is what is primarily driving the share price down.
More worrisome for BP is the departure of shareholders, who they may have trouble getting back again for some time into the future, not knowing how far BP will fall, and if they will even survive as they are.
Early in today's session the stock plunged another 11 percent to land at a 13-year low in London.
At this time the estimates cost of the cleanup and liabilities are from $20 billion to $40 billion.
All of that is driving a growing number of investors away from the oil giant.
Wednesday, June 9, 2010
BP (NYSE:BP) Being Driven to Bankruptcy?
The more you look at the venom spewing from progressive, socialist news outlets, the more you see BP (NYSE:BP) could be driven to bankruptcy, or as the Democrats are hoping, to receivership, where the Obama administration could take over yet another portion of the industry in America.
With over 6,000 claims being made against BP, and the idea of removing liability caps which would drive BP to a place of being forced to go bankrupt, it doesn't look good for the company to last much longer before having to make the decision.
There are so many terrified environmentalists and government scientists (university-based) which are throwing out such outrageous numbers as to the amount of oil spewing from the oil leak, that it's impossible to accurately gauge how much is really coming out, with some government estimates at the high end of about 19,000 barrels a day.
Now some are making wild claims of 100,000 - 200,00o barrels a day, which if even remotely true, which is highly unlikely, would potentially place the liability of BP at from about $200 billion to $400 billion.
The point is the more outrageous and ridiculous the claims, the less likely BP would have the ability to pay for the liability associated with it ... assuming they start to believe it, or respond to the stories.
Added altogether, if the far end of the spectrum of how much oil is being released into the ocean are close to being accurate, there won't be a BP as it is, and bankruptcy will be guaranteed. It's still possible even under the existing conditions, although less probable.
For those who smell blood and attempt to soak BP for all it has, it is a plan that will backfire, and the attempt by the mainstream media to demonize BP could bring the opposite results of what was hoped for, which is to make them pay by driving the opinion of the American people.
However much oil is being leaked into the Gulf of Mexico will eventually be found out, and we'll at that time understand the liability of BP at that time.
For those looking to sue them to get something out of them, it is going to be a long haul if the claims aren't legitimate, as the company is on life support at this time, and if the alleged rage attempted to be created by the media is flamed, and endless lawsuits are added to those already in place, it's difficult to see how this could end up being a good thing for all the parties involved, as a bankruptcy would wipe a lot of that away.
The clueless mainstream media, online progressive news outlets and politicians are driving BP toward bankruptcy, and they think they're going to gain from it. They won't.
It seems to be the secondary push behind it is to make an excuse for the government to take over the company. If Democrats think they'll be able to get away with this after the healthcare fiasco, and the bailing out of their big-business friends in banking and the auto industry, I think they should stop smoking whatever it is they're smoking.
Does the phrase "Tea Party" mean nothing to them? It should. And doesn't anti-incumbency have something to teach them? Evidently not. They'll learn the hard way though.
Many are trying to turn BP into a political story rather than the accident it was. That's a mistake I think those attempting this will regret doing in the near future.
With over 6,000 claims being made against BP, and the idea of removing liability caps which would drive BP to a place of being forced to go bankrupt, it doesn't look good for the company to last much longer before having to make the decision.
There are so many terrified environmentalists and government scientists (university-based) which are throwing out such outrageous numbers as to the amount of oil spewing from the oil leak, that it's impossible to accurately gauge how much is really coming out, with some government estimates at the high end of about 19,000 barrels a day.
Now some are making wild claims of 100,000 - 200,00o barrels a day, which if even remotely true, which is highly unlikely, would potentially place the liability of BP at from about $200 billion to $400 billion.
The point is the more outrageous and ridiculous the claims, the less likely BP would have the ability to pay for the liability associated with it ... assuming they start to believe it, or respond to the stories.
Added altogether, if the far end of the spectrum of how much oil is being released into the ocean are close to being accurate, there won't be a BP as it is, and bankruptcy will be guaranteed. It's still possible even under the existing conditions, although less probable.
For those who smell blood and attempt to soak BP for all it has, it is a plan that will backfire, and the attempt by the mainstream media to demonize BP could bring the opposite results of what was hoped for, which is to make them pay by driving the opinion of the American people.
However much oil is being leaked into the Gulf of Mexico will eventually be found out, and we'll at that time understand the liability of BP at that time.
For those looking to sue them to get something out of them, it is going to be a long haul if the claims aren't legitimate, as the company is on life support at this time, and if the alleged rage attempted to be created by the media is flamed, and endless lawsuits are added to those already in place, it's difficult to see how this could end up being a good thing for all the parties involved, as a bankruptcy would wipe a lot of that away.
The clueless mainstream media, online progressive news outlets and politicians are driving BP toward bankruptcy, and they think they're going to gain from it. They won't.
It seems to be the secondary push behind it is to make an excuse for the government to take over the company. If Democrats think they'll be able to get away with this after the healthcare fiasco, and the bailing out of their big-business friends in banking and the auto industry, I think they should stop smoking whatever it is they're smoking.
Does the phrase "Tea Party" mean nothing to them? It should. And doesn't anti-incumbency have something to teach them? Evidently not. They'll learn the hard way though.
Many are trying to turn BP into a political story rather than the accident it was. That's a mistake I think those attempting this will regret doing in the near future.
BP (NYSE:BP) Bankruptcy Fears Heighten As Market Value Drops Below $100 Billion
Share price of BP (NYSE:BP) continue to plunge, increasing concerns they may end up having to declare bankruptcy to survive the financial and reputation devastation coming from the oil spill in the Gulf of Mexico.
Other worries from shareholders, which include many pensions and institutional investors which had counted on the success of BP for their own financial success in the years ahead, included cuts in the dividend, and continual loss of value in their holdings in the company.
Since April 20th, the giant oil company has lost 47 percent of its value, seriously affecting shareholders of many stripes.
Those watching the situation say liability could reach as high as $40 billion before it's all over for BP, although that even could be a low estimate based on many unknown factors at this time.
If it becomes too much, there will be a lot of losers if BP ends up having to declare bankruptcy.
Other worries from shareholders, which include many pensions and institutional investors which had counted on the success of BP for their own financial success in the years ahead, included cuts in the dividend, and continual loss of value in their holdings in the company.
Since April 20th, the giant oil company has lost 47 percent of its value, seriously affecting shareholders of many stripes.
Those watching the situation say liability could reach as high as $40 billion before it's all over for BP, although that even could be a low estimate based on many unknown factors at this time.
If it becomes too much, there will be a lot of losers if BP ends up having to declare bankruptcy.
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