Power Line had an interesting post yesterday about the $20 billion BP is setting aside to cover damages in the Gulf oil spill. One of the Power Line readers did some basic math and drew some interesting conclusions.
This is the reader's calculation:
"In response to the notion (not necessarily yours, I understand) that Obama's generated $20B for US taxpayers, I'd like to to offer some admittedly sloppy calculations.
"First, you said yesterday US citizens own 40% of BP. Looking at my Schwab account right now (I own BP stock myself), I see their market capitalization presently stands at $99B.
"If their stock price has fallen by 40%, that means the market cap was (before all this ass-kicking started) around $165B -- so the value of the stock has fallen by $66B. 40% of that loss, or around $26 billion of it, was sustained by Americans if we hold 40% of the stock.
"So the net cost of this drama to the taxpayers is $6B and counting. And that is assuming that $20B is distributed fairly. Perhaps they can put ACORN in charge of it."
There might be a few things to consider in this transaction. John Hinderaker points out that since much of BP stock is held in mutual funds, the Americans who actually contributed toward the $20 billion are probably not aware of their contribution. John states, "Modern politics consists largely of promoting the interests of those who are aware they are getting money, in opposition to those who don't realize they are paying it." That is definitely where we are. The other aspect of this is that yet again the Obama Administration has taken money from the private sector and put it under government control. He has moved wealth (the dividends and previous value of the stock) from people into government. That has been the direction of the money flow during his administration. As the public sector has grown, the private sector has been strangled.
I wonder how long it will take the voters to realize that all of us are getting fleeced. I hope it happens before November!
Leave a comment