Matt Simmons: Dr. Doom of the Gulf oil leak

He’s continuing to say the relief well will fail, an undersea oil lake may cover 40% of Gulf, there’s a massive leak at the well head, and BP will go bankrupt with the stock falling to zero. is saying (subscription only) that Simmons is a lunatic and BP will rise from the wreckage. This is a deeply telling indication that Simmons is correct. I believe Jim Cramer strongly urged folks to buy BP at 40 because things would be fine, just fine.

Meanwhile, Battling Barack is still trying to negotiate terms with BP over the size of the escrow fund and who will manage it. Excuse me, is not one party here the US government and the other a corporation? Look, if Simmons is only half-right, then stopping the blowout and cleaning up the mess is now the equivalent of war. In other words, whatever it takes, do it. Now.

Finally, how’s this for a fun couple? BP has retained Goldman Sachs to protect them from hostile takeovers. I wonder, will they need to hire someone to protect them from Goldman?

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