Bashing BP

There is something happening that frankly bothers me. It is the difference between a politician doing what is best for the people and a politician telling the people what they want to hear.

There have been politicians on television bashing BP. Yes, obviously BP made a huge mistake in the gulf. Whether BP followed standard drilling practices or tried to cut corners is up for debate. I have read some things that suggest part of the reason for the problem was that BP representatives at the oil rig where trying to cut corners to save money. That is certainly possible, but it is absolutely irrelevant to the point I want to make.

The American public wants BP to pay for the damages they have inflicted, which is only right. After all, companies take risks to make money, but they shouldn't put people at risk that don't stand to make money from the venture. I have no problem at all with that concept.

But the problem is that politicians are bashing BP in public. Your first reaction may be to say good, they deserve it. But the problem here is who are you punishing when you do that? The answer is many people. Sure, the decision makers at BP get punished, which is fair. Also, the investors in BP are punished as their stock prices fall. This includes many in the United Kingdom who have their retirement savings tied up in the company. This is fair, although sad. When you make an investment you take the risk. In this case, they chose poorly, as I almost did. Yes, I had considered buying BP a while back.

But you are also punishing the people damaged by the oil spill. What!!! How can that be?

If you want BP to pay for the damage that it caused, you can't destroy the company. If the company has no money, they can't pay for anything. And that is exactly what the politicians are doing. At one point this year BP stock sold for over $60 a share. It is now down less than $30 a share. I have seen that often the decline in the stock price corresponds with a politician running their mouth, and each time this happens, BPs ability to pay for the damage it has done declines.

Yes people, BP should pay. But if you destroy the company, how can they? Politicians, please wise up before more damage is done.

Take Care,

Steve