Kent Pitman

Kent Pitman
Location
New England, USA
Title
Philosopher, Technologist, Writer
Bio
I've been using the net in various roles—technical, social, and political—for the last 30 years. I'm disappointed that most forums don't pay for good writing and I'm ever in search of forums that do. (I've not seen any Tippem money, that's for sure.) And I worry some that our posting here for free could one day put paid writers in Closed Salon out of work. See my personal home page for more about me.

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JUNE 14, 2010 9:06AM

BP quakes in its boots as Obama issues “demands”

Rate: 16 Flag

Ok, I admit it, I just plain made up the part in my title about BP quaking in their boots. Probably quaking with laughter is more likely, though I can't actually document that either. Just call it an educated guess—or perhaps the subliminal effect of champagne glasses clinking in the distance.

You're welcome to watch the video of yesterday's Meet the Press if you have the time:

Visit msnbc.com for breaking news, world news, and news about the economy

But, as usual, I have transcripts, edited down from those supplied by MSNBC, and marked up so you can see what I'd like to focus on:

MR. AXELROD: Well, we want to make sure that money is escrowed for the, the legitimate claims that are going to be made and are being made by businesses down in the Gulf, people who've been damaged by this. And, and we want to make sure that that money is independently administered so that there won't be slow-walk on these claims.

MR. GREGORY: What are we looking at in terms of a money...

MR. AXELROD: I'm not going to...

MR. GREGORY: ...a figure for the claims?

MR. AXELROD: I'm not going to--that's a--that will be the discussion between, between us and BP. But it has to be substantial enough to meet the claims that we expect to come.

MR. AXELROD: Well, let me make clear that Mr. Hayward knows exactly what our, what our demands have been from the beginning. And...

MR. GREGORY: But what's the difference with the bank CEOs? Because they understood what the demands were from the administration, too, but the president got the bank CEOs themselves in the room.

MR. AXELROD: Well, he got them in a room as an industry, and he's talked to the oil industry and other industries as well. But in this particular matter we've had--our intermediaries have been very clear, there's no doubt in the mind of BP what our, what our demands are and have been.

The reason I think the champagne must be flowing somewhere at BP is that, by contrast, it wasn't long ago that Robert Reich quite seriously suggested putting BP into receivership. As Reich explains, “This is the only way the public know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge.” So BP is surely breathing quite a sigh of relief that President Obama did not take Mr. Reich's suggestion.

BP also surely knows that every time the President makes a move that's more tepid than he should, it acts as a kind of lightning rod, drawing attention away from BP and onto an administration that, while it hasn't acted nearly as strongly as it should, did not create this situation.

Note that at one point in the transcript, Axelrod remarks that the aim is to avoid a “slow-walk” on the claims. BP has repeatedly promised to pay “legitimate” claims resulting from the oil spill. Congress, acting as the public's legitimate ally, and hearing the weasel words “legitimate claim” in testimony before it, has rightly asked for detail on what exactly constitutes a legitimate claim. BP has resisted saying.

And yet, unlike Congress, Mr. Axelrod seems to have adopted the term “legitimate claim” wholesale. Sure, it goes without saying that all claims have to be legitimate. But that's like when someone asks you how much you owe in payment for something and they respond, “five dollars—in legitimate money.” Legitimate money goes without saying. Saying it indicates you think you might not get legitimate money. It's a way to insult the person you're talking to. Just as saying “legitimate claim” insults the people who are likely to file. This is a big deal. An entire part of the country will be damaged irreversibly. It seems to me, though few have discussed it in the media, that the livelihood of several island nations, both in terms of fishing and in terms of tourism, is at substantial risk.

Legitimate claims indeed. Spare me.

And yet it is central to the notion of knowing how much money we're talking about to understand what kinds of claims might be filed. Why is the first order of business not to enumerate that? This goes to the transparency of process I've called for recently. How on earth can we know how much to reserve if we don't have even a guess of what's being affected?

But apparently, if we are to believe Mr. Axelrod, the very concept of a legitimate claim is not an objectively determined thing. It's not a matter for a court of law. It's not something one can just discuss. It's something that will emerge from a negotiation. [white washing] See again the text I've highlighted above where Axelrod says if you don't understand what I'm getting at. It says “that will be the discussion between, between us and BP.”

The notion of a “legitimate claim” is BP spin, but it's coming from David Axelrod as if it were part of the administration position. That bodes ill.

*  *  *

Lastly, let me come to the matter of the word “demands.” This would be laughable if not so terribly, terribly sad. “Demands”? Really? If you have “demands,” then you just make them and then deliver them—by telegram or email or text message. The medium really doesn't matter. What matters is that they are clear about what is asked and clear about the consequences if the demands are not met.

A demand is an ultimatum, something that either gets done or else another dire action occurs. What dire action? I don't see one promised. A demand is like “Either you shut this down within 48 hours or we'll put your company into receivership like Robert Reich suggests.” That's a demand. A demand is not something like “Let's have lunch this week and talk about our demands and find out what you think of them.”

President Obama needs to pick a paradigm and stick with it. In spite using of the word “demands,” Obama is coming across like Michael Dukakis riding around in a tank, like someone who has never done that kind of thing and isn't really comfortable doing it. The rest of his rhetoric is more compatible with a collaboration, and that's a bad metaphor. One does not retroactively rush in and ask to be a partner in an oil spill. If the Republicans can tar him with that, it's not going to wash off by election time.


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Excellent analysis, Kent. Makes me wish you had the ear of the Obama administration.

Your point about taking the focus off BP and keeping it on the shortcomings of the White House is a particularly insightful and important one right now. This is the sort of "strategy" that tends to confound Democrats over and over again. Dammit.
The stranger part of this is currently on the networks here in Florida Kent is Bee Pee running ads with various spokesmen promising to settle every single 'legal claim' and 'until it is restored to back the way it was'. What are the perimeters here??

Many of the fishermen who first put in claims have settled for a $5000.00 check. It is long gone and their former incomes are gone.
Are they supposed to pay the electric bills with a promise of later money??
Who the hell knows when that time comes??

I somehow look at the talking heads in big oil and big gov't having a discussion and wonder what is said at the country club later while they all pay golf together and drink.
I caught that word when Axelrod said it, and I knew it was game, set and match.
This is going to sound a little "conspiratorial" but it is what I think is happening. about 120 years ago, the railroads captured the Republican party (maybe earlier, given that Lincoln was a railroad lawyer and gave away millions of acres of the west to them). It wasn't long after that the the burgeoning oil industry captured the railroads - the very thing TR wanted to 'bust up'. The D's had the support of labor and immigrant populations and so things stayed essentially in balance.
Once the labor movement was much weakend and out immigrant population mostly had to stay in the shadows, the Ds began to lose power. So to compete, they sold their souls to Wall Street and the financial sector (under Clinton). The Rs have been going after that base like flys to .... well you know ~ once it appeared that the Ds may need to regulate a little bit. With BP, the second largest corporation in the world, getting their teat in a wringer, Obama may be cutting some back room deals a la the Rs and the financial sector (see Citizens United to figure out what those deals may be).
So in the end, I am not hopeful when I hear Axelrod mimic Hayward's language. People be damned, there is corporate money to be had here.
Ok yes I do believe in a shooter on the grassy knoll too.
Your final paragraph sums it up well.

He wasn't the person who can answer the phone at 3 in the morning.
Susan, thanks for the support. I think Obama is not getting good advice just now. I have more to say on that—maybe tomorrow.

Mission, indeed, I don't doubt that they are rushing to offer money these people can't afford not to take and that it comes with strings saying this is a final settlement. I'm just guessing. But that should be made illegal just to avoid the possibility. It's also the reason that the government should take the money from BP and offer it to citizens, not have BP do it directly wtih citizens. The government is in a better bargaining position with BP. I don't doubt that this is the reason BP has rushed to “take responsibility,” and I use the term lightly. George Orwell lives.

Deborah, thanks. That's a good restatement.
Tim, thanks for the interesting historical analysis. They say it's not paranoia when the enemy is real... And certainly at least the temptation to do these things is everpresent, so it's appropriate be aware. “Eternal vigilence is the price of liberty,” and all that...
Obama is a huge disappointment, the kindest thing to say about the man is that he seems to mean well, but what a contrast from the fighter I thought I was voting for, he's got the rhetoric down, but no follow through

and yes, that word "legitimate" is a door you could drive an oil truck through
Roy, I can't believe what a poor spokesman Axelrod made for Obama. I have some additional remarks, maybe they'll appear in a piece tomorrow, on that matter. I wish I knew if Obama was responsible for Axelrod's poor performance or vice versa. Obviously, at some level Obama is. But I mean I wish I knew who was calling really the shots on the game plan for addressing this.
There is a certain sense that Obama & Co. are being played for fools. You have to hand it to BP and their allies. Their deflection onto the White House has been a superb strategy.
Lefty, yes, they say of poker that if you don't know who the fool is at the table, it's you. This is definitely a game of poker and I'm somehow pretty sure Obama doesn't even realize he's playing much less how badly he's being taken.
This, all of this, really does hurt my blood pressure. Yesterday I commented on someone's piece here about the role the ocean has always played in my life. Every time I see pictures or hear stories about what is happening in the Gulf, my soul weeps because once begun, when and how does it end? These questions remain because no one offers answers. No one. I think that is because no one really knows.

Then anger rises. How can they not know? How can they not have anticipated? How dare they? How can they face the people in the Gulf who lives and livelihoods may never be the same? How can they face all of us whose souls feed on the beauty now being taken?

I want Obama to be clear. I want Axelrod and Gibbs to be clear. I think, in fact, that no one is clear. I think there is no clarity and that is a disaster in and off itself. One has to wonder if the officials of BP know how to be clear. How long have they allowed fog to stay in place? Does anyone there or in the entire industry really know what is definitively happening and how, definitively, to stop it, to remedy it? Does anyone definitively know how long all of this will take? How can anyone know, definitively, how much it will cost and how many will, ultimately, pay prices?

I think no one can say because no one really knows.

I saw Reich's piece when he wrote it. He speaks so baldly and boldly that I often feel he knows no one could or would do exactly as he proposes, but at least he points a direction.

Perhaps the real tragedy of all of this and of God knows what else is the ignorance. What games have been played and did the players honestly believe that they would never be found out?

I read an interview this morning that Roger Simon conducted with the President and my sense from his answer there is that Obama has, at least, a sense of what he doesn't know and at least, I think, doesn't want to pretend to know what he can not yet know.

A little while ago, I saw a few minutes of an interview of Ed Markey by Andrea Mitchell. He seems to have some clarity, but only to a point. Who will be on this committee? commission? to oversee what is going on? How long will it take? How many layers of red tape face anyone who may need help and may have begun to need it last month?

My blood pressure needs to rest for now, but my inner volcano is firing up.
Anna, thanks for contributing to the discussion. I'd be sorry it gets you so upset but for the fact that it should get people upset. We all have to be upset.

As for BP, I'm sure they understand. Maybe not about the oil spill, but about the business. They know PR and they know that every day that someone is not closing them down is a day of revenue they can pass through to stockholders and a day that the people in charge can get patted on the head for having held their ship together through this storm. The storm they're worried about weathering is the economic one, not the ecological one. It's plain from their press conferences they don't have any skin in this game. Someone should take their homes by eminent domain and assign them homes on the water where the oil is rolling in so they can wake and walk by it every day. And then we can hear their cries of I want my life back and we, even we not religious, can quote, “as ye sow so shall ye reap.” (I hope that's the right quote... it's been a while...)
Kent, I agree that BP understands how to play games, but what actual facts and figures - real facts and figures, honestly reached facts and figures do they have? have they allowed "their people" to collect and keep? This morning I read in the British press that people there are embarrassed by the CEO and can't understand why the company's president was chosen. You may be right that their PR people love the fact that attention here is focused on the WH but that has become our political mantra, at least on the part of the Republicans with Democrats not far behind. We need Madeline Albright to call everyone to task by facing this with courage and straightforwardness cutting through all the muck. That is what you are calling for here and what Reich called for in his piece. I wish those in charge would at least 'fess up that they don't really know exact facts and figures but that those responsible will be held accountable and will not be allowed to weasel out of all that is owed to all who suffer as a result of this disaster for if they are allowed to weasel out and not face honest consequences, then this will not be the only or the last such event.
Anna, that's what I meant above about the fool at the table playing poker. BP has no motivation to want this information. If no one else has it, they can assert that it's unobtainable, that they tried but there is nothing to be had. And the longer it's unavailable, the longer delayed various actions against them are delayed. So they have every motivation to avoid that. It's not that they're muddled, they're clear in the notion they must go as slowly as possible. I honestly think they have no reason to want to fix this. I bet someone has run some analysis and figured out that at this point they've done so much damage that although we see it as continuously getting worse, most of the things they've destroyed are just destroyed. (I think it can be worse, but they may not see that... it can spread farther, etc.) They also have their heads in the sand, believing their own obfuscation, and so that helps them believe it's not important...

I think if they cared, they'd have hired every unemployed person they can find and put them in boats and have them at minimum patrolling all that broken boom they seem to put so much stock in. And they're not doing that. If they cared, they'd have masks on the people doing the work, and they're not doing that. These are not oversights. They're very savvy about what they're doing. We're just being hoodwinked by claims that they're unable to do better. Of course they can do better, it just requires spending money they'd rather return to their stockholders. That's why the opportunity to do that should be taken from their hands.
Fair enough. Surely someone at BP, in the industry at large, in the WH has the moxie to make these beginnings and speak without protective spin, say they will pay whatever costs come because it is the right thing to do. Does anyone remember how to do that? I keep thinking about that mill owner in Lynn? Lowell? whose business burned to the ground shortly before Christmas some years ago. He stepped up to the plate immediately and told his workers that they would be paid for as long as possible. Didn't he try to rebuild what had been lost? I remember thinking that he had set a standard and that others would follow his example. How quickly we forget that it is possible to do what is right rather than what is expedient or cheap or unacceptable in any way to anyone.
Anna, it's not that they don't remember. They are legally obliged not to be friendly. Read Fiduciary Duty vs. The Three Laws of Robotics. I've laid it out there.
I should add that the reason the mill owner could do it was probably that he owned the company. A publicly held corporation is very different. The duty of the officers is to the stockholders. There is no leeway in that. That's why the government has to intervene and why the absence of government intervention is the same as legally requiring there to be problems recovering the money.
For what it is worth, I am hearing encouraging coverage on BBC America right now. I can only hope.
Kent, your suspicions might turn out to be correct but I'm inclined to give Obama the benefit of doubt until I'm sure he's botched the discussions or negotiations with BP. By the way, can the government just put a company into receivership?
Abrawang, I'm not sure the procedure, so I'm not qualified to answer. I'm assuming Reich didn't pull the idea out of the air. If I had to guess, I'd bet the basis for thinking it could be done would hinge on filing suit for a particular level of damages that exceeded what BP could pay. Or there might be some sort of injunction that could be done if there was reason to believe they were about to end up in that situation. I'm sure there are some, even some lawyers, who will say that's unreasonable. Then again, what decides which lawyer is right or wrong, if someone pushes hard enough, is a court, not a shouting match. So I presume the question isn't whether there's a lawyer who thinks it's not a reasonable thing, but merely whether there's a lawyer who thinks it is a reasonable thing and a court willing to hear him.
Kent,
I've developed a tic. Every time I hear the word "legitimate claims," I shudder. It's the word "legitimate." Like you, I know that this means that a lot of people are going to get screwed and ruled to have illegitimate claims--which is really shorthand for saying they're not educated for smart enough to get what they should have coming.
BP should be in receivership. Money should be flowing like that fucking leak right now, going to the folks who are suffering now from the effects of the disaster. I know that there are folks who were hurt by the Exxon Valdez who are still waiting for their money. No lie.
I'm waiting to hear what Obama has to say tonight. And he he damn well better walk the walk.
FLW, I'll be watching, too. I'm not expecting a lot of walking the walk, but maybe I'll be surprised. I think he's very much misjudged this situation and is getting himself in worse by the minute. (See funny-but-sad comic by Tom Tomorrow in Big Salon.)
Kent,

After reading your entire post, one single word stood out for me; COLLABORATION

Government by the people, for the people, etc. If corporations are now people, where does that leave us, exactly? I think the answer is clear.

As for those who have defended Obama in the past and are now recognizing him as a disappointment, "collaboration" was clear before he ever became president. His FISA vote was as clear an indicator as one could have had at that time, and too many dismissed it as "pragmatism" or any number of other dishonest or delusional concepts. He collaborated then, he collaborates now, and he will continue to do so, I think. I still cling to the idea that he two years left to clean up his act, but I see nothing to indicate he will.

RATED
_______
Yup. Sounds like the administration won't be push BP on what constitutes legitimate. It's disappointing for the reasons you list, but thankfully in the end it will be the courts to decide.

It is unfortunate that many of the judges appointed are industry-favoring conservatives, but part of me suspects that even those judges will be more fair than a White House that thinks in purely political terms.
Rick, I hold out hope, too, and I stand by my decision to vote for him. Voting for McCain would have been 10,000 times worse. But, like you, I don't hold out a lot of hope that things will change from what they are now.

Skeptic, the mere overhead of the courts will add a burden that means a lot of people who are due something will not get it simply for unwillingness to do the overhead. This is what's so clever about the BP strategy—it allows them to accept some issues and appear cooperative while discouraging or actively rejecting others. When those reach the court, maybe some will get through but BP won't care... they'll be playing the percentages, not the individual cases. I think the reason they're willing to say “we'll pay for everything” isn't magnanimity but a cynical calculation that their position with citizens and with the courts would be worse if they didn't, and that ultimately the same standard would be applied. By giving a veneer of getting along, it's impossible to go by simple rhetoric and it requires fancy lawyers.

The thing Congress could do to help is pass legislation clarifying that the Courts may assign lawyer's fees to BP in all cases where a case has to be brought at all. That would mean more lawyers with a decent case could take it on contingency and would encourage BP not to try to run them down.
All good points Kent.
Kent,

The defense that Obama was the lesser of two evils is the most common. It's really the only defense that holds. Of course, the bigger issue there is that it didn't have to be that way except that the majority of Americans are either too stupid to recognize that, or simply don't care enough for it to matter.

I was surprised to see that California voters just rejected a bill that would have leveled the playing field somewhat for campaign financing. I can't even begin to understand that one.

Regarding the court battles for "legitimate claims", one huge consideration in addition to the cost of waging them is how those battles will be prolonged. How recently was the Exxon Valdez situation finally resolved?
Rick, I thought about that prolonging thing. With the money now in independent hands (since it took me a few days to respond), the risk should be less. But a rule saying winning cases get their lawyers' fees paid, it would probably not pay for them to prolong things.

Karin, to the first point, although he is noted for putting opposition people into his advisors and staff, I have the weird sense that even those are him sort of picking his villains. It's got a staged feel that I think is not insincere in the sense that he doesn't believe it, but nonetheless lacking in authenticity in the sense that there are easy villains and difficult villains. In a sense, it's easy to have the stereotypical villains around. They say predictable things mostly and keep you informed about the “standard” party line. But Obama has a blindspot near his own party and doesn't want to hear that he's out of line with that. He ignores Krugman and Reich and others I think in part because he already wants people to believe he's satisfying them. It's a little (to really stretch an analogy beyond almost all recognition) like the business of BP not wanting people to wear facemasks because then you might know it was dangerous...

You also made another point that I'll get back to another way soon, I hope. :)
Very nice analysis, Kent. I've always appreciated your ability to cut through any B.S. in order to give the reader a better view on the topics you choose. Thank you for this.
It just seems we go from bad to worse, and the future doesn't look bright. Who's responsible seems to go up in smoke here. Who was watching when it all went down? Where were the members of our Press when that tanker spill that occurred beforehand was a reality?
It is so sickeningly clear. We are all in the rampant control of a governing body with its own best interests outlined before our own--let alone that of the natural world.
Rated
Poor Woman, thanks for the kind remarks about my writing. I do think the Press has to learn to push on these things better and faster, though in fairness they're economically troubled and it's hard for them to do it. Really, it's the government who is actively charged with oversight and it didn't do its job. Obama probably doesn't want the blame for that, and I can understand that, but the way to avoid the blame is to not ally himself too closely with the problem. That means carefully monitoring conflicts of interest (there are judges who are active in this bug have investments in the drilling industry and it's got people upset). It means people who did wrong need to be prosecuted (Obama needs to address the liability matter but hasn't directed Justice to go after them yet—his pattern is to want to first put out the fire, so to speak, but he said that about the financial crisis and we've seen no criminal investigation there either... nor have we seen him go after the criminal problems from previous administrations, so I am doubtful and I think most people are that there will be any such prosecutions—leading to an assumption that he's complicit which if not unambiguously true at least has some solid meat for legitimate discussion). We need to re-establish a culture of true accountability. And we need to stop making the assumption that it's so vitally important that these companies keep operating that we will waive all morality and safety to allow it.
I think that last sentence of yours sums it up for yours truly.
I quote:
"And we need to stop making the assumption that it's so vitally important that these companies keep operating that we will waive all morality and safety to allow it."
Where the well monied meet is not before our eyes. And they do it slyly apart from us as though we are worth giving the dig to--as in, we'll get to pay for any upset.
One thing that disturbs me here--why would it be in our best interest to voluntarily go into Iraqi territory if there were not more oil there? And not just that which had already been processed for use, with Taliban payoffs, etc acting like a tax against any real value of the petroleum thus found.
I mean, what had we been thinking?
In retrospect, I think we hid our heads in the sand, refusing to believe our own people did hurt us far more than any one little foreign band might do on its own or without the help of some underhanded business dealing.
We are so blind I think we'd pass out if it ever occurred to any of us just how badly off we truly are due to our ignorance.