Money, Media and Politics

This picture is the true testament of our selfishness and cruelty. But I am surprised that financial reporting channels like CNBC and Bloomberg allow their anchors to take drastically partisan positions on such matters. Through all my years of experience in investing and financial world, I have found one eternal truth. That, to make money you have to be neutral. The minute you start wearing democrat or republican idiotic ideological hat, you tend to make foolish investments. Then it is beyond my understanding why reputable channels like CNBC and Bloomberg are trying to side with BP.
I am a Chicago school follower and fully believe in free market enterprise. But free market does not mean that we give the freedom to everyone to do what they want to do without any respect to law of the land. If that is the case then, idiots like Kudlow on CNBC will argue that we were wrong in punishing Enron executives for creating havoc in energy markets back in early 1990s, we were wrong in punishing WorldCom and Martha Stewart for doing illegal activities. Then why on earth are we trying to favor BP and saying that by implementing an escrow fund, Obama administration is trying to shakedown BP? If Mr. Kudlow and other CNBC anchors have their way then they will soon ask to legalize prostitution, remove ban on drugs etc. These are also industries in some context.
Following free market ideology does not mean closing your eyes and argue like a fool. Chicago school of thought is based on critical thinking more than on any single ideology. We are encouraged to question the norm. Capitalism can thrive only if we use our brains and not by following an ideology to the extreme so that we walk on the edge of being idiot.
Today, Bloomberg also reported that letting BP go under due to this oil spill will not be good for the economy. We can improve the economy by pushing for child labor, prostitution, gambling and drugs also. I want to ask that Bloomberg reporter what he thinks about these ideas. His argument is as ridiculous as it can get.
If a company can't do the job properly that it is supposed to do then free market dictates that it should be eaten over by more efficient enterprises. Here is a company, BP (British Petroleum), which pays its CEO almost 10 million dollar in salary who does not even know precisely how many deepwater rigs they have (based on his testimony in Congress). Is this the best way of running a company. If they can't even fire the guy who has been making downright stupid comments throughout the oil spill fiasco then I think BP deserves to go down.
All the shareholders of BP, which I guess include Mr. Kudlow, some of his fellow reporters and of course Louisiana judge who overturned the drilling ban recently, are in for a huge surprise. The longer they hold their investment in the hope of republicans (in this particular case only, I am not saying democrats are any better) being able to do something, the more money they will loose.
I don't think BP will survive if government implements the plan to recover the claim costs from the company. And rightfully so. Any company where CEO does not know what is going on in the company does not and should not survive for long. We have had Lehman Brothers as an example. BP is relatively too small to fail. All the jobs will perhaps still be working on the same assets/departments albeit under a different company name (Exxon, Conoco, Shell etc.) depending on which company gets which assets.
I normally don't agree with politicians though in this case I agree with Obama that it is in our best interest for a great future to start thinking about our appetite for energy and waste. We are also partial culprits here. But it is also our collective responsibility to make sure that BP pays every dime and more than compensates for management mishaps that it has been practicing until now without worrying about consequences. Their should be some reigning in of corporate greed that harms innocent lives in the process of enriching few stakeholders. Free market preaches better efficiency through better management and thoughtful resource utilization to maximize profits. It never teaches us to take short cuts. Whether BP fails or survives will depend on the ability of its board and management to bring the house in order. Though one thing is very clear, BP's stock is worthless at this point whether you like it or not.