(snippet)
If BP does go bust (regardless of whether it is deserved), and even if it is just badly wounded and the US entity is allowed to fail, the long-term OTC derivatives in the oil, refined products and natural gas markets that get nullified could be catastrophic. These will kick-back into the banking system. BP is the primary player on the long-end of the energy curve. How exposed are Goldman sub J. Aron, Morgan Stanley and JPM? Probably hugely. Now credit has been cut to BP. Counter-parties will not accept their name beyond one year in duration. This is unheard of. A giant is on the ropes. If he falls, the very earth may shake as he hits the ground.
If BP does go bust (regardless of whether it is deserved), and even if it is just badly wounded and the US entity is allowed to fail, the long-term OTC derivatives in the oil, refined products and natural gas markets that get nullified could be catastrophic. These will kick-back into the banking system. BP is the primary player on the long-end of the energy curve. How exposed are Goldman sub J. Aron, Morgan Stanley and JPM? Probably hugely. Now credit has been cut to BP. Counter-parties will not accept their name beyond one year in duration. This is unheard of. A giant is on the ropes. If he falls, the very earth may shake as he hits the ground.
As we are beginning to see, the Western pension structure, financial trading and global credit are all inter-twined. BP is central to this, as a massive supplier of what many believe(d) to be AAA credit. So while we see banks roll over and die, and sovereign entities begin to falter… we now have a major oil company on the verge of going under. Another leg of the global economic “chair” is being viciously kicked out from under us. Ecological damage is not just an eco-event on its isolated own. It has been added to the list of man-made disasters jeopardizing the world economy. The price tag and resultant knock-on effects of a BP failure could easily be equal to that of a Lehman, if not more. It is surely, at the very least, Enron x10.
All the counter-party risk associated with the current BP situation means the term curve of the global oil trade has likely shut down. Here we have yet another credit-based event causing a lock-up in markets that will now impede trade and commerce. It looks like an exact replication of the 2008 credit market seizure could ensue all over again – and it could probably be a lot worse. The world is in a far more delicate state now.
More Here.Inside the Dire Financial State of the States
Read more: Here..
BP will go belly-up
ReplyDelete20 bn won't even cover per-barrel fines
Amereagans will go from McMansion
To Campo del FEMA
Say good-bye to your
SHREK CEREAL
Let's not let them get off so lightly! BP, Transocean, Halliburton destroy the Gulf eco-system, collapse the generational lifestyle of residents with no regret or genuine compassion... they should not be allowed to get off with BK! Criminal investigation is DEMANDED... CORPORATIONS are not "persons." They enjoy the same rights as natural persons BUT are never held accountable!!
ReplyDeleteNames are being taken.... ASSES must be kicked whether we have any bubble gum or nut!!
Remember, Remember the ONES Responsible for the Gulf Disaster!!!
I doubt the real BP will go bankrupt. These corporations (criminals) form all sorts of shell corporation names. I read that BP united states has numerous shell corporations located in Cayman Islands and the Bahamas. If BP files for bankruptcy, it will be for one of their shell corporations. They will claim they are broke and take the pensioners $$ and the stockholders money.
ReplyDeleteI feel bad for the pensioners and stock holders,they will be the victims in this scam.
It's all fake, it's by design.
Adding to what @5:47 said, according to a recent ariticle BP total worth is around 100 Trillion doll hairs because they have so much oil I think the article used the phrase "Super Big Gulp" full of oil. Something about Chase owns 20 percent of it and if they (BP) go belly up Chase gets however many trillion. I dunno though.
ReplyDeleteGulf Oil blowout not a result of BP “negligence” ?
ReplyDeleteBut a result of ‘acceptable risk”. collusion with government seeking “Oil security” in preparation for war on Iran , at the demand of another country?
“Full speed ahead and damn the torpedoes”
American imperialism/ militarism gone mad?
Americans will now pay the environmental bill for these ‘aceptable risk’ costs of militarism and rush for profits of a B.P.that is 40% american owned.
Guest Post at Zero Hedge:
Obama Administration Knew About Deepwater Horizon 35,000 Feet Well Bore, Green-Lighted And Fast-Tracked Project
“President Obama and Secretary of Interior Ken Salazar, Secretary of Energy Steven Chu, and Defense Secretary Robert Gates were informed that BP would drill an unprecedented 35,000 feet well bore at the Macondo site off the coast of Louisiana. In September 2009, the Deepwater Horizon successfully sunk a well bore at a depth of 35,055 below sea level at the Tiber Prospect in the Keathley Canyon block 102 in the Gulf of Mexico, southeast of Houston... According to the Wayne Madsen Report (WMR) sources within the U.S. Army Corps of Engineers and the Federal Emergency Management Agency (FEMA), the Pentagon and Interior and Energy Departments told the Obama Administration that the newly-discovered estimated 3-4 billion barrels of oil in the Gulf of Mexico would cover America's oil needs for up to eight months if there was a military attack on Iran that resulted in the bottling up of the Strait of Hormuz to oil tanker traffic, resulting in a cut-off of oil to the United States from the Persian Gulf. Obama, Salazar, Chu, and Gates green-lighted the risky Macondo drilling operation from the outset, according to WMR's government sources."
· 165 comments
· Read more
http://www.zerohedge.com/article/guest-post-obama-administration-knew-about-deepwater-horizon-35000-feet-well-bore
Is everything on this planet a Scam?
ReplyDeleteSeems like many people are infected with a
disease called money, getting ahead, greed,
and whatever else you wish to call it.
Maybe people better listen to the people who
have had NDE's (near death experiences) and
learn something about what is important.
Perhaps this economic system is in the death stage.
Prepare. Get Ready.
7:13
ReplyDeleteFor awhile it worked
I mean where would the average Joe rather be: An American Indian in the year 1700
Or an American ------ in the year 1950
But it almost seems as though we've come way too far
WAY WAY WAY too fast - and now - problem is; we can't back up
"Is everything on this planet a Scam?"
ReplyDeleteNo, but the American economy is !
Ponzi Casino capitalism did not have ‘a near death experience” the Dollar Hegemony in world trade and finance died when the money markets shut down .Kaput.Dead .
On the whole there are no real physical commodity profits to be got in high waged America, a services economy that was running on credit/ debts, its pre crisis /death “profits” paid out as corporate dividends were only equal to the foreign money it borrowed. It borrowed to finance its balance of trade bills and for purchasing US treasuries for deficit spending on wars.
The losses of capitalism were socialized, to be paid for out of future tax revenues of government. Creating more debt to pay off debts!
There is not much left over after that for social security benefits . The economy is only held together now by printed paper and confidence in the value of that printed paper . A confidence and conditioning based on PAST memories of the power of deficit spending .A power of the printed dollar fast decining as the debts continualy mounted up.
The ruling elite know that with industry exported,and property values falling along with foreign credit supply , the American economy cannot export its way out of trouble to pay for its imports in equal exchange of value.
So the banksters are looting whatever remaining wealth there is left in the hands of the “muddle” class,in a last ditch effort to seize the assets before the whole thing implodes.
Any scam will do , derivative bets against the future of American companies or housing mortgages or property values are a sure thing. The casino capitalists and even the pension funds hedgies have placed their bets against America hoping to profit from the collapse of the very companies that employ them.
Bankrupt casino capitalism ,gone mad as one dollar tries to eat up the value of another dollar for self survival. ..
That is why everthing in american capitalism
is starting to appear in the economy and society as all crazy scam + plus coming ‘austerity”
It is .
.
"I mean where would the average Joe rather be: An American Indian in the year 1700
ReplyDeleteOr an American ------ in the year 1950"
Who is this "average" AMERICAN IN THE YEAR 1950?
an average american historical construct?
"Joe six packs" father ?
A unionised white worker about to head off to suburbia and a white picket fence ?
Or are you asking and include as an "average" in your 1950 american fantasy :
A still living indian on a reservation,or an underpaid Black earning about a third less than a white male american for doing the same work and living in a high rent segregated slum
A woman white or black factory worker
paid at a womens rate of pay...
just asking ..
I have a difficulty understanding "Joe Sixpack" white settler type tales on the greatness and glory of an America long gone...
BP will be bailed out and continue to drill.
ReplyDeleteIt is clear 10:34 you have difficulty understanding. No doubt there is and always be corruption and inequality in the United States.
ReplyDeleteHowever, there is no comparison to the brutality and horror other nations inflict upon their populace.
The mere fact that you can post absurdities such as this without fear of extraction from your home in the middle of the night by a death squad, illustrates my point.
The banks are already insolvent, so what does it matter what BP does? Investors who manage pension funds were idiots during Bush's presidency, if they ignored the jobs being sent offshore. Real estate as an investment? Not for the next 10 years, and not for the last 10 years.
ReplyDeleteEveryone is insolvent.
ReplyDeleteBP will just change names to protect their identities.
Like I said, not even the Rothschild's have the kind of money we're talking about when we talk about remediating the situation in the gulf.
This is an earth changing mega event bigger than anything that's happened before except
perhaps Noah's flood.
There is too much racial bickering on this website. Enough already
ReplyDeleteThis won't get you into heaven.
Gee whiz !
ReplyDeleteMy comparisons to these time frames had nothing to do with race!
I was merely pointing out that once we "turned the corner" we just seemed to roar on down the hill at breakneck speed.
We accomplished so much good for so many in so many aspects of life - and now it's like -- holy shit! allof a sudden we want to give every one on the entire darn planet a 100k job a year for doing nothing from cradle to grave with retirement at 50 and full pension with full medical and all you can steal .
Why couldn't just take a 100 year "breather" and be "stuck in the 50's 60's and 70's for awhile?
"However, there is no comparison to the brutality and horror other nations inflict upon their populace."
ReplyDeleteNo comparison with the "horror"wars one imperialist/empire nation has inflicted on other populations either, in the name of its freedom and right of might to do so. korea ,vietnam ,iraq etc and thats only in recent decades. Earlier ,Just think indian nation/racial genocide by land stealers,slavery and ECONOMIC segregation for wage advantages .
But "americans have always been the good guys as long as you wear rose/white colored glasses and cannot view the real world as it is and view yourself as victim of the white mans burden of imposing "progress" and civilizing non- racial 'democracy" for business.
The 50ties and 60ties were the golden time for america because its industrial manufacturing dominated the world after competing imperialist manufacturing countries were knocked out of the competition during WW2
But life has moved on since then and you cannot go back to the past golden "free trade" age.
The biggest manufactiuring power in the world today is really China ,but its product and GDP is valued in cheap labour value under the old dollar hegenomy.
Dear 7:30 pm,
ReplyDeleteYour ignorance of historical acts of violence committed by all nations of any military consequence is self evident.
As I stated earlier, the mere fact you may utter or publish such rhetorical nonsense without fear of retribution, clearly illustrates this society and government's tolerance for dissenters.
You have obviously been brainwashed to a state of self hatred which will lead to your own self destruction.