Is the Market Ready to Resume it's Bullish Ways?

Equity market closed mostly down today, but finished the the day with a strong push.  Have the past few days been strictly a result of global political turmoil, or was that just an excuse for a market correction?  It appears to have been some of both.  Investors could not look past the trouble in Libya, like they did Egypt.  The situation in Libya is terrible, but it presented investors with an opportunity to harvest some profits from the run up in equity markets over the past 6 months.  A month from now will these negative sessions be viewed as entirely news driven, or will this be considered a standard market correction that was sparked by the news?  The most likely scenario will be markets continuing to grow like they have so far in 2011 with a few of these news driven corrections.  This market will continue to go higher and tomorrow should be a great buying opportunity for those who need to boost their equity position.

Gumbo at the Beach

Grab your heartburn medicine of choice and head on over to the 22nd Sandestin Gumbo Festival.  It will feature some of the gulf coast best culinary minds displaying their take on the Cajun classic.  The gumbo festival will kick-off Sandestin's "Taste of the Village" in it's inaugural year.  "Taste of the Village" will have Village merchants supply guest with some of their tastiest culinary delights.  Live music and the smell of mouth watering food will be in the air all weekend.  It should be a great time for people of all ages, and great opportunity to get out and support some local businesses.  Enjoy the beautiful weather this weekend, and drive safe.

BP and Feinberg at Odds Over Final Payment Formula

BP argues that Feinberg's final payment formulation is far to generous.  In a 36 page letter to the Gulf Coast Claims Facility, BP breaks down the entire claims process including suggestions on how final payments should be calculated.  The claims facility is currently using a formula that factors in a loss of 70% in 2011 and 30% in 2012.  These percentages will be multiplied by actual demonstrated 2010 losses.  According to BP these projected loss figures are too high, and will result in overly generous final payments.

There is no reason that they shouldn't be overly generous.  No one made them drill in the gulf, and no one made them run there rig recklessly.  But when it comes to compensating residents of the gulf, BP should be required to go above and beyond.  Think about it like this: BP is trying to make this a very exact quantitative process, but there proposal neglects to factor in diminished quality of living.  Gulf coast residents lives have been impacted in some many more ways than lost income, and they should all be included in payments.  It appears that this letter is already backfiring on BP.  Media and politicians are tearing them apart and this should lead to some loosening of the purse strings by the claims facility in hopes of saving face.