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'The Poster Company for US Fracking Has Fallen': Chesapeake Energy Files for Bankruptcy

Originally published at http://www.commondreams.org/news/2020/06/29/poster-company-us-fracking-has-fallen-chesapeake-energy-files-bankruptcy

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From the article:

“‘There will no doubt be others to file for bankruptcy in the near term as the sector looks to get out from under the copious amount of debt it took on during the boom,’ said Thieroff.”

So where was the bailout for US homeowners who got underwater in their mortgages leading up to the 2008-9 meltdown?

Oh, right–only flesh-and-blood persons create moral hazard. The corporate person is entitled to reward even in the complete absence of risk.

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Chesapeake Energy is no longer liable for any public health problems that its methane releases caused. That includes cancer from the wells and it includes agricultural losses from climate change.

A corporation is a legal human except that it has two key advantages. First, a corporation can commit manslaughter and it doesn’t go to jail, and neither do the major stockholders.

Second, a corporation can legally promise all of its business partners the moon. In particular it can promise its employees retirement benefits and health benefits. Then if the corporation goes bankrupt, it doesn’t legally owe anything more to anybody. Now, if a medical student takes out $200,000 in student loans and then catches a horrid disease on the job and can’t work, she and her hubby too are on the hook for life.

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Frack Those MotherFrackers.

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