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JaysRage (90.24)

The economic impact of BP spill on Florida and U.S. economy

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May 28, 2010 – Comments (9) | RELATED TICKERS: BP , XOM , DIS

Everyone was in a panic when Greece was unable to pay its debts and was on the verge of going under economically as a country.   Greece's GDP is less than half of that of the GSP of the state of Florida.   As the BP spill makes its way onto the coasts and into the waters, it appears inevitable that this will have a devestating effect on the beach, fishing waters and general property value of large parts of the state of Florida.    This is a state that already is hindered by severe property value depreciation and high debt loads.   Now valuable ocean-front property that traditionally holds its value much better than inland real estate will now be devalued.   Many jobs will be lost.   Many businesses will be ruined.   Unless the government and/or BP is forced to open up the checkbook and pay for it, this could have just as terrible economic impact as it has an environmental impact. 

That's just Florida.....not to mentioned Louisiana, Mississippi and the entire lower East coast if the oil catches into the major currents and it dragged all the way up the coast as it is expected to.  

I think this thing is a much bigger monster than Greece and it's exposure.   It will take years before the damage is even fully known, I think, but I think it's fair to say that it will be measured in 10s and 100s of billions of dollars of impact.   

 

9 Comments – Post Your Own

#1) On May 28, 2010 at 4:13 PM, Tastylunch (29.43) wrote:

Just wait till the lawsuits start rolling in.

No way the governors of those states are going let themselves take the heat for what is bound to be insane public outrage. They are going to look to crucify someone.

This is going to get extremely ugly.

 

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#2) On May 28, 2010 at 4:31 PM, JaysRage (90.24) wrote:

BP has been like teflon in the past, managing to avoid dealing with the consequences of their disasters.   They had a major hand in the Exxon Valdez disaster....facility explosions in Houston....basically, they have a reputation for weak quality standards.   Tastylunch , I think you're right.   I think this ends up in the courts.   

Will this be enough to bankrupt one of the largest companies in the world?   Yes, it is an acute possibility.   The problem is that if they go bankrupt, no one gets paid.   

They will probably end up settling for far less than actual damages, just so that people can get something.   It will be substantial, especially since BP is not a U.S. company.  

So who covers the REST of the impact? 

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#3) On May 28, 2010 at 5:00 PM, JaysRage (90.24) wrote:

Maybe nobody is talking about it because the running tab is just beginning to accumulate.   The more I think about it, the more I think the tab could start with a T and not a B.....especially if this makes it all the way to the East Coast.  

Just one story of many....who wants to pay big money to vacation near blackened beaches and snorkel in dead waters?  I couldn't believe my eyes when I saw the ignorance of Moody's report that the cleanup efforts will provide enough jobs to counter-punch the economic impacts of the spill.   Um....no.   This is nothing like Valdez.   Yeh, Alaska fishing was superior, but let's be honest, their tourism industry was extremely weak, and the property devaluation was minimal compared to what's coming in Florida.    It would be interesting to see what Floridabuilder's take on all of this will be.  

http://www.msnbc.msn.com/id/37000531/ns/business-real_estate/

 

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#4) On May 28, 2010 at 5:18 PM, blesto (31.80) wrote:

I love shrimp and the prices are starting to skyrocket. There may not be any edible seafood from the gulf coast and around Florida in the near term.

I'm avoiding all BP filling stations from now on.

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#5) On May 28, 2010 at 5:29 PM, park94 (< 20) wrote:

I don't think anybody cares much about Louisiana or Miss. neither BP or the Govt basically because those states suck, and the people that live there are mostly morons or hicks with some exceptions.Not even people that live there are complaining about the spill mostly because the only reason they live there is because of oil rigs. If it hits Florida then that is a problem.

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#6) On May 28, 2010 at 5:51 PM, Donnernv (< 20) wrote:

Jays:

I was not aware that BP was complicit in any way with the Exxon Valdez spill.  Could you lay out for me how BP was involved?

Thanks in advance.

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#7) On May 28, 2010 at 6:30 PM, JaysRage (90.24) wrote:

http://www.huffingtonpost.com/2010/05/25/bp-exxon-valdez-response-gulf-oil-spill_n_588335.html

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#8) On May 28, 2010 at 7:28 PM, 100ozRound (29.52) wrote:

Any thoughts on hurricane season approaching?  What happens if we have a big one blow through the Gulf and it picks up the oil/water mixture and starts swirling it about?

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#9) On May 28, 2010 at 9:25 PM, blesto (31.80) wrote:

100ozRound 

It would mix it up real good and send oil on an express train with the Gulf Stream all the way up the coast.

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