Thursday, June 10, 2010

BP Facing Bankruptcy Take Over

By Ronnie Spangler

British Petroleum (BP) is moving closer to the days of bankruptcy or a hostile take over by the Obama Administration or China. With their stock steadily declining in value it is only a matter of time before another interested party makes a move to buy up the cheap stock (as compared to other oil companies) and gain control of BP. China has already said they are interested in BP and some in Congress have suggested the Obama Administration should take over the North American Operations Division of BP. England has said privately that they would not be completely opposed to a move by President Obama taking over this part of the company. On the other hand England has warned the President his constant bereavement of BP has affected the value of the company so much that retirees in England are loosing money from dividend payments and it is beginning to affect their financial well being.

President Obama understands that most Americans could care less how the loss of dividend payments affects British shareholders and retirees so he will continue to hammer BP forcing their value on the market to steadily decline. Due to the President's political ideology and his stated goals of transforming America, he is determined to use this crisis in the Gulf to his advantage. Using the same scenario he used to gain control of General Motors the President is betting the Feds can out maneuver China after BP's stock falls low enough on the open market.

Given a choice England will do everything in their power to side with President Obama to prevent China from gaining control of BP. In the mind of British leaders and the board members of BP it will be a choice of two evils. Everyone in the business world sees what is going on but they are powerless to stop it. Gaining control of one of the largest companies in the oil industry will be just one more step in President Obama's plan for a total transformation of America.

People think President Obama is just incompetent or too inexperienced in the way he is handling the crisis in the Gulf. If you consider his ideology of never letting a crisis go to waste, working with BP to minimize the crisis would be the last thing he would want to do. Without shifting all of the blame, responsibility and anger onto BP his plan will not succeed.

Sadly as the lawyers get richer, more Americans become unemployed, revenues from tourism continue to decline, American anger towards BP continues to rise and the value of BP on the open market continues to fall the crisis in the Gulf will move to a higher level. That level will be announced by the Administration. Just before and as their excuse for taking over a controlling interest of BP, the Administration will declare it to be a matter of national interest.

For those that cannot understand why the President has not talked to the CEO of BP since the oil spill began, this is the only answer that makes sense. Will it work, only time will tell.

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