Tornado Alley (PROG)

[SilverSurfer]

Why is the U.S. Government Protecting BP? (Big Bus - Big Gov)

"So why is the government working overtime to protect BP and keep American citizens in the dark? How much is BP’s potential liability? A hundred billion bucks? A trillion bucks? Who knows, but it is surely a very big number. Could it be that a bankruptcy of BP would be a worse financial disaster than Lehman Brothers? Some say yes! Gordon T. Long wrote a lengthy BP bankruptcy article for “The Market Oracle.” He said recently, “I could not have stated it any clearer than Jim Sinclair at jsmineset.com: People are seriously underestimating how much liquidity in the global financial world is dependent on a solvent BP. BP extends credit – through trading and finance. They extend the amounts, quality and duration of credit a bank could only dream of. The Gold community should think about the financial muscle behind a company with 100+ years of proven oil and gas reserves. Think about that in comparison with what a bank, with few tangible assets, (truly, not allegedly) possesses (no wonder they all started trading for a living!). Then think about what happens if BP goes under. This is no bank. With proven reserves and wells in the ground, equity in fields all over the planet, in terms of credit quality and credit provision – nothing can match an oil major. God only knows how many assets around the planet are dependent on credit and finance extended from BP. It is likely to dwarf any banking entity in multiples.” (Click here for The Market Oracle story in its entirety.)

The government knows that a BP bankruptcy would cause a giant financial meltdown that would probably make what happened in 2008 look tame. That is the reason I think the government is working so hard to protect BP. In June, the President said, “Untold damage is being done to the environment — damage that could last for decades.” I think the President got it right the first time."
http://usawatchdog.com/why-is-the-u-s-government-protecting-bp/