Sunday Funnies: Gov't Can't Clean Up Its Own Act


During the ongoing environmental disaster caused by BP plc (BP) that is spewing thousands of barrels of oil a day into the Gulf of Mexico (only now reducing the spill rate), there have been many calls to have the federal government take over the cap and recapture effort. This is a very lame idea.

First of all, nobody has more incentive in bringing this disaster to an end then BP because no entity has suffered more financially or seen its reputation eroded faster.

Second, no government, here or anywhere, has demonstrated with any consistency that it's more adept than private enterprise at solving problems when the stakes were so high.

Finally, it would not be the government that would be doing anything! They would have to hire a private firm just like they hired Halliburton (HAL) and Blackwater (now Xe) in Iraq because the government has no expertise in this area. Oh-oh, I think Halliburton is already on the job and has been implicated in this fiasco by virtue of its service contract on the now sunk rig. Nevertheless, do not put it past the government to miss this detail.

It is better to let BP fix the problem, pay for it directly and suffer the future consequences, than to have the government muck things up some more (there is too much muck now), have to send BP an invoice and end up in court disputing the cost because they could claim the government contributed to the problem.

Actually the government is somewhat complicit for having lackluster inspections, poorly enforced safety standards, no back-up plan and looking like a deer in the headlights now. The government is already doing what it is best at -- blaming others and finding a safe place to hide.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: He own shares and options of BP and RIG.

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