Saturday, June 05, 2010

Should BP be put into "temporary" receivership?

Saturday afternoon CNN trotted out Ms. Huffington and (himself) Robert Reich, who explained “Why Obama should put BP under temporary receivership”, link here.

Huffington pointed out the health problems of the cleanup workers and BP’s lack of credibility in its response so far.

Reich insisted that the receivership would be short-term and would end with the completion of cleanup (whenever that can be).

But even the thought that the government could perform a Venezuelan-style “people’s” expropriation of oil company equity would discourage investors, stop exploration, and damage the portfolios of many retirees and pension funds.

Some conservatives (or perhaps libertarians) have told me that the real problem is that the lack of shallow water drilling permits drives companies into deeper water, where the drilling is inevitably more dangerous.

Wikipedia attribution link for old p.d. photo of BP trademark.

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