Unfortunately the President seemed to miss the point - capping BP's huge gusher off the Gulf. Coincidentally, I read today that BP now stands for BIG PROBLEM and not British Petroleum.
Surfing around the web today I read comments like, "if we could put a man on the moon 40 years ago and 238,857 miles away, how is it that we can't cap a well that's 40 miles off the US coastline in deep water?" I, myself, am asking the same question.
I believe that the President missed the boat on this one. He has not focused the entire might of the United States on getting this problem fixed. As they say, he was a day late, and in this case, billions of dollars short.
Unless you've been hiding in a cave somewhere, you know about the largest oil spill in U.S. history which was triggered when the Deepwater Horizon drilling rig suffered massive failure and subsequently sank, causing oil to begin gushing into the Gulf of Mexico.
Many of us also remember the Exxon-Valdez spill of 1989 which, until recently, was considered the worst in U.S. controlled waters and an environmental disaster. In the years since this tragedy in the remote waters off the Alaskan coast, Exxon has made a full recovery, including a 1999 merger with Mobil which made ExxonMobil one of the largest publicly traded companies in the last few years.
There are many differences between the Exxon spill and the recent BP spill, namely the proximity to the continental United States and its thriving coast along the Gulf of Mexico, so the question we pose to our Trader's Blog readers is, is it a great time to invest in BP stock and hold out for its recovery, or is a short position the only one to consider when talking about this market?
After you vote, be sure to tell us what you think in our comments section below.