Posted by Colin Doyle June 22, 2010
Image Courtesy of Reason.com
President Obama's moratorium to cease the issuing of new deep-water drilling permits was just the beginning of the sloppy policy reaction coming down in the wake of this crisis. Once the government gets in the middle of this (drilling) business it will make the investment in and operation of it near impossible. The ability of the federal government to recall permits, and require new ones, opens any company up to the possibility of potentially being shut down. It sets a bad precedent.
It is my opinion that in order to clean up this mess (pun intended ) the President should realize efforts must be focused on BP specifically. That's the trade here. BP's swaps are already rallying in expectation of what should be an easy political fix for the President, and an even easier meal for Wall St.
Oh, and here's the one year on BP. Geronimo!
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