Sunday, June 27, 2010

Did Obama Drop The 'N-Bomb' (Nationalize) on BP?

Let me state right off the bad that this post is entirely based on conjecture; but reasoned logic none the less. Why did BP agree to put $20 billion in a fund not under their direct control? You have to work backwards a bit here. This was not in exchange for an agreement that it would be a cap. This also precludes them from cutting off liability for an amount less then that in the event of legal excuse. It is not some 'good corporate citizen' because if they really wanted to they should be able to get money to those effected by the oil spill much more efficiently then by adding a governmental layer of bureaucracy.

Once you get through all the affirmative reasons it is not, you are left flipping it around and asking what were they trying to prevent. The only thing that comes to mind is Obama dropping the 'N-bomb', Nationalization. It did not necessarily have to be with that word, but some other threat of taking over significant portions of BP or in another way substantially lowering the value of the corporate entity beyond the $20 billion. Something which made handing over the $20 billion, which seems a bad decision, the lesser of two evils.

No comments:

Post a Comment

Related Posts with Thumbnails

Like what you read; Subscribe/Fan/Follow