Jul 17 2010

A Break from the Storm

Published by at 11:24 pm under US Economy

“Justice, sir, is the great interest of man on earth.  It is the ligament which holds civilized beings and civilized nations together.” – Daniel Webster

 

July 15th was a big day in case you didn’t notice.  Most important by a mile, British Petroleum reported that “no oil was leaking into the Gulf of Mexico from the Deepwater Horizon oil spill” for the first time since it began on April 20th.  It is hard to imagine than anyone would not be relieved to learn this, but of course some could care less.  While the leak is now plugged, it is estimated that nearly 5 million barrels of crude oil gushed into the Gulf at a rate of up to 62,000 barrels per day.  The market value of this oil would have been approximately $350 million – instead the cleanup and litigation will cost many tens of billions.  It is so dreadful to think of the mass destruction, pain, suffering and death this tragedy has caused and by no means should this be minimized, but at this very moment it is nice to know that the leak is stopped and a little sun is peaking through.

 

On this very same day, the SEC announced that Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was beginning to collapse.  It is rather ironic that in agreeing to the largest ever penalty to be paid by a Wall Street firm, Goldman merely acknowledged that the marketing materials for the subprime product contained incomplete information.  While this is a setback for our friends at Goldman, I suspect the firm had the best (and most expensive) minds working on this little resolution.  After all, Goldman makes money going up, they make money coming down and they will always find a way to get back on their feet – bet your bottom dollar.

 

July 15th was pretty good if you ask me.

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