Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1444.8 | 7.9 | 0.55% |
| Eurostoxx Index | 2513.6 | 14.8 | 0.59% |
| Oil (WTI) | 92.8 | 0.3 | 0.35% |
| LIBOR | 0.354 | -0.001 | -0.35% |
| US Dollar Index (DXY) | 79.67 | -0.159 | -0.20% |
| 10 Year Govt Bond Yield | 1.65% | 0.02% | |
| RPX Composite Real Estate Index | 194.5 | 0.3 |
Markets are higher this morning on speculation Spain is preparing to ask the ECB to purchase its debt. The stock market definitely feels like the path of least resistance is up, though it could be the calm before the storm – Alcoa kicks off earnings season next week. Notable earnings warnings so far include Caterpillar and FedEx. Bonds and MBS are down / flat.
Yesterday’s ISM Purchasing Managers Report was reasonably constructive. The headline number of 51.1 means that the economy should expand at roughly 3% or so, at least according to historical trends. Production and backlog were the weak spot, while employment and prices were areas of strength.
The Washington Post has an article which shows what the Fed is up against: Even though interest rates are at rock bottom levels, savings deposits continue to increase. Risk aversion and the desire to replenish lost savings are behind the phenomenon. Even though the stock market has rallied, the lack of volume indicates that retail investors are not putting money to work there. Aside from the risk appetite considerations, it also demonstrates why consumption remains weak.
You know who loves this situation? Corporate America. As if on cue, I just received an email saying WellPoint is issuing $1.5 billion of senior unsecured 30 year convertible bonds tomorrow with a price talk of 2.5% – 3% coupon, 20% – 25% premium. To put that in perspective, the 30 year government bond is at 2.8% and WLP pays a 1.9% dividend. Old time convertible arbs are shaking their collective heads at that one.
Finally, Bill Gross on budgetary crystal meth and the ring of fire.
Filed under: Morning Report |
All Things in Moderation 
Forgive me brent, I’m loaded for bear this morning:
“Bank profits from new mortgages have soared since the Federal Reserve began its third round of bond purchases two weeks ago, fuelling the debate over the fallout of the latest dose of quantitative easing.
The extent to which QE3 drives down new mortgage rates and helps homeowners or is pocketed by banks will be crucial to the success of the policy and the prospects for growth in the U.S. and global economies next year.
The rise in profit earned by banks from creating new mortgages came as Fed chairman Ben Bernanke sought to defend QE3 against attacks from Republican presidential candidate Mitt Romney and other critics. Mr Romney said last week the Fed was keeping interest rates “artificially low”.
Speaking in Indianapolis on Monday, Mr Bernanke said it would be “inappropriate” and “ineffective” for the Fed to raise interest rates to put pressure on Congress to tackle the deficit. QE3 would not lead to long-term inflation, he said, adding that stronger growth would help savers in the long run despite low interest rates today.
Although the average rate on a fixed 30-year mortgage reached 3.4 percent this week – a record low – mortgage rates could be lower if banks passed on the full drop in their funding costs.
“For banks which are mortgage originators this [QE3] was some of the best news they could possibly have heard,” said Steven Abrahams, mortgage strategist at Deutsche. “They will continue originating loans and selling them into the market at a significant premium.”
The interest banks pay on mortgage bonds has dropped from 2.36 percent on September 12, the day before the Fed announced its program, to as low as 1.65 percent last week. It edged up to 1.85 percent on Monday.”
http://www.cnbc.com/id/49249106
When all you have is a hammer, everything looks like a nail department. Since all the Fed has is monetary policy, it’s going to drive that baby home, consequences be damned.
LikeLike
“The threat of defense-contractor layoffs recedes. “Several defense contractors on Monday backed off threats to issue layoff notices to employees in coming weeks, a move they had said might be required given the threat of mandatory federal budget cuts in January.”
They were bribed by the Obama administration:
“Sen. Lindsey Graham (R-S.C.) says that he will do anything he can to block the Obama administration from reimbursing defense contractors for severance costs if the firms don’t send layoff notices to employees.
The Obama administration issued guidance Friday that said defense firms’ costs would be covered if they have to layoff workers due to canceled contracts under the across-the-board cuts set to take effect Jan. 2.”
http://thehill.com/blogs/defcon-hill/industry/259517-graham-says-hell-block-reimbursements-in-layoff-notice-fight
This admistration is really becoming more and more corrupt and the second term won’t end well as so often proves the case.
LikeLike
“Americans have poured record amounts of money into savings accounts even though interest rates are at historic lows, new federal data show…The total amount in those accounts climbed nearly 5 percent to $6.9 trillion in the spring, the highest level recorded since the Federal Reserve launched its regular reports on the flow of money in the economy in 1945…The pattern suggests that Americans, wounded by the financial crisis and scared by an uncertain job market, do not want to take any risks with their money.”
I guess that might explain why nobody is defending a payroll tax cut extension, eh?
LikeLike
That analysis ignores the guarantee fee increase (courtesy of the last debt ceiling deal), which is now going into effect for new mortgages and accounts for something like 30-40 bp of the price.
I find it amazing that papers like WaPo say the same thing but forget that critical piece of information, considering that the government put it there in the first place.
LikeLike
JPMorgan slapped with big new lawsuit”
Hank Paulson almost literally begged Jamie Dimon to take over Bear Stearns on a single weekend, for the good of the financial system, and Dimon did it, even though it was a relatively bad deal for them. Then again Paulson told the all bankers including JPM they had to take bailout money to cover up for those who actually needed it, which JPM did not, and Dimon did that.
Dimon even supported Obama in the 2008 and was a major contributor. So now what happens? The government turns on JPM by suing them for Bear Stearns losses from the company they never wanted in the first place. The suit will be probably be thrown out in the new year, or settled for a noimnal sum but it’s just another election ploy to make the administration look good.
Gee I wonder why the banks don’t trust the Obama administration and have turned against it?
LikeLike
brent:
I don’t expect that the banks will eat the fee, do you?
LikeLike
“A significant element of the government’s historic settlement with big banks over foreclosure abuses takes effect Tuesday, when firms face a deadline for carrying out more than 300 changes in the way they service mortgages and treat struggling homeowners…Although the new standards haven’t received as much attention, they are crucial for fixing a broken mortgage system, government officials said. The standards forbid the pervasive practice of ‘robo-signing’ — essentially filing forged and shoddy legal paperwork to speed the foreclosure process — that caused national outrage in late 2010. In addition, mortgage servicers no longer can foreclose on a borrower while simultaneously negotiating a loan modification, a practice known as ‘dual tracking.’ They must provide customers with a single point of contact, rather than shuffling them around between different employees with each call. And they must treat foreclosure as a last resort, only after considering a range of other options to keep borrowers in their homes.” Brady Dennis in The Washington Post.”
In other news, the administration continues to be puzzled that it’s efforts to get banks to loosen mortgage standards and promote more lending have largely failed!
LikeLike
No, of course it will get passed on. I am just annoyed by these stories because I worry that Washington will pressure the banks to lower rates by the amount of QE and the banks will pass on the fee to independent mortgage bankers (like me)
LikeLike
brent
so tell me what you think about my last post then the Brady Dennis story am I on target?
LikeLike
john, i agree with most of that, but IMO, its even more basic. Until the government defines what a “qualified mortgage” is, banks have no safe harbor on new issues and will be even more strict than GSE / F&F guidelines. Right now, they are potentially on the hook to eat the losses if the borrower defaults on the loan years after it was made.
LikeLike
I didn’t even point out how curious it was that the government went after JPM and not Citigroup, that is of course unless you believe that Jack Lew still has a strong equity interest in C in his “blind trust”. Then it isn’t curious at all.
LikeLike
Perhaps Peter Orzag made a phone call, or Robert Rubin himself. My own nomination for target #1 was Goldman Sachs, based on the Senate referral, but they got a free pass.
LikeLike
GS did not make the mistake of coiming out publicly against the administration in the last two years. Dimon erred in that, as I’m sure he would privately agree today. Better to have taken the Treasury Secretary job, and fixed things from the inside.
LikeLike
Well it is coming from the NY AG, not the administration. Or do you think the NY AG and the administration are working together on this?
LikeLike
Brent and DJ – I am speculating from the nearest similar experiences I have had, which are in this case not very near. I guess that when unknown and unbooked contingent liabilities were discussed that weekend the Treasury committed to indemnify its chosen merger survivors against them. If it did so, and in writing, that will be known soon.
The NY AG sits on some national quasi-public panel on finance, doesn’t he? Is it related?
edit: http://www.economist.com/blogs/schumpeter/2012/10/jpmorgan-and-bear-stearns
The link does not clarify much for me.
LikeLike
brent
originally, the story was that it was Schneiderman but today’s stories are suggesting DOJ behind the scenes.
I think the real story is the administration possibly suggesting the target and trying to be FBI-like in taking credit for the work of others, because it’s creates more legal problems for the Feds if they are the lead prosecutor in light of Paulson’s efforts I would guess.
The only thing we can be sure of is that this was a highly vetted action with numerous phone calls made back forth and between people who aren’t supposed to be involved.
LikeLike
“The White House has held a series of secret meetings in recent months to examine the threat posed by al-Qaeda’s franchise in North Africa and consider for the first time whether to prepare for unilateral strikes, U.S. officials said.
The deliberations reflect concern that al-Qaeda’s African affiliate has become more dangerous since gaining control of large pockets of territory in Mali and acquiring weapons from post-revolution Libya. The discussions predate the Sept. 11 attacks on U.S. compounds in Libya but gained urgency after the assaults there were linked to al-Qaeda in the Islamic Maghreb, or AQIM.
U.S. officials said the discussions have focused on ways to help regional militaries confront al-Qaeda but have also explored the possibility of direct U.S. intervention if the terrorist group continues unchecked.
“Right now, we’re not in position to do much about it,” said a senior U.S. counterterrorism official involved in the talks. As a result, he said, officials have begun to consider contingencies, including the question of “do we or don’t we” deploy drones.”
http://www.washingtonpost.com/world/national-security/white-house-secret-meetings-examine-al-qaeda-threat-in-north-africa/2012/10/01/f485b9d2-0bdc-11e2-bd1a-b868e65d57eb_story.html?hpid=z1
With the election so close, I’m guessing that “drone insurance” is unavailable in Libya at any price right now.
LikeLike
mark:
The “task force” that was announced at the last SOTU speech.
DOJ doesn’t exactly have a stellar record in prosecution on anything but insider trading cases so if anything was going to be done, it had to be by the state not the Feds.
After all, even Angelo Mozilo only paid 67 million to the SEC. DOJ didn’t go after him at all.
LikeLike
Forgot about this one. PPACA’s 3.8% tax on investment income above a threshold.
http://professional.wsj.com/article/SB10000872396390444813104578016670323951186.html?mod=WSJ_hpp_sections_personalfinancemg=reno64-wsj
LikeLike
“Former presidential contender and billionaire Ross Perot is worried that America is a sitting duck for an unnamed foreign invader. In an interview for his new autobiography, Perot said the nation’s weak economy has left us open for a hostile takeover—and neither presidential candidate is the man to save the country.
Citing an impending fiscal cliff, Perot warned of disaster. “If we are that weak, just think of who wants to come here first and take us over,” the former CEO of info-tech company Perot Systems told USA Today on Monday.
http://news.yahoo.com/blogs/ticket/america-could-taken-over-warns-ross-perot-152428497.html
“The last thing I ever want to see is our country taken over because we’re so financially weak, we can’t do anything,” Perot says.”
Those damn Canadians have been just watching and waiting for payback since we burned Toronto in 1813. It’s like the Mafia, it’s always your best friend that does the hit on you.
LikeLike
Actually, I thought of Perot when reading Blinder’s op-ed in the WSJ saying that Romney isn’t qualified to be President simply by virtue of being a business leader. It might have been relevant for Perot, but not someone who was already a governor.
LikeLike
brent
Blinder was a much better Fed governor than he is a historian.
FDR and Lincoln are two of our most beloved and respected presidents and also the two that may have had the least respect for democracy as they found it. Each ran roughshod over traditional checks and balances and showed blatant disrespect for the other branches of government. The complete opposite of what Blinder wrote.
LikeLike
LikeLike
“Former presidential contender and billionaire Ross Perot is worried that America is a sitting duck for an unnamed foreign invader. In an interview for his new autobiography, Perot said the nation’s weak economy has left us open for a hostile takeover—and neither presidential candidate is the man to save the country.”
Wha??????? Is he smoking something?? Oh, I get it, now it makes sense:
Anything for book sales!
LikeLike
OT:
This is good news! Maybe Jim Cramer making a stink about his dad not being able to vote did some good.
LikeLike
“After Mitt Romney made a more aggressive effort to make U.S. policy towards China a more important campaign issue, President Obama’s campaign responds today with a new ad on Romney outsourcing American jobs to China. The spot is set to air in New Hampshire, Virginia, Florida, Ohio, Iowa, Colorado, and Nevada.”
See this is how bad a candidate and campaign the Romney team is.
They should have already had ads out there about GM investing 1.2 billion in a new plant in China, and 250 million in Peugeot just this year, or the sale of battery maker A123 in which we have invested 249 million to Chinese firm Wanxiang,a month ago.
Even Ron Paul would have run a better, and certainly more entertaining campaign.
LikeLike
“My name is Richard Hayes, and I pick up Mitt Romney’s trash,” the man says to the camera in the 60-second Web ad. “We’re kind of like the invisible people, you know. He doesn’t realize, you know, that the service we provide, you know, if it wasn’t for us, you know, it would be a big health issue, us not picking up trash.”
“Picking up 15, 16 tons by hand, you know that takes a toll on your body,” Hayes continued. “When I’m 55, 60 years old, I know my body’s going to be break down. Mitt Romney doesn’t care about that.”
Ok, notwithstanding the fact that poor people don’t care about trash collection anymore than the rich, I doubt this ad very seriously.
Even here in Maryland, the people who pick up my trash are Hispanic immigrants who speak little or no English, and you expect me to believe that just north of San Diego THIS is the guy doing it?
Please!
LikeLike
oops
http://news.yahoo.com/blogs/ticket/romney-garbage-man-ad-video-132521031–election.html
LikeLike
Bill Black is pretty pissed off this morning at Robert Samuelson. Can’t say I blame him.
http://www.nakedcapitalism.com/2012/10/bill-black-robert-j-samuelson-tries-to-create-a-moral-panic-about-deficits.html
LikeLike
I don’t have time to bring in all the links but not only am I hearing rumors of the Grand Bargain (to the tune of $4 trillion) in the lame duck session, but also hearing that Geithner’s replacement may be none other than Erskine Bowles………………..yikes
LikeLike
why oops?
LikeLike
The NYT was reporting 4 trillion over 10.
LikeLike
lms
I would bet on Jack Lew or Peter Orzag first.
LikeLike
Re the aging boomers, I can’t figure out why increasing immigration is off the table… Fixes the demographic imbalance and is a lot less painful than tax increases / benefit cuts.
LikeLike
nova
forgot to include the link in my original post
LikeLike
oh — i didn’t even see the original so i thought it was commentary. do’h
“us not picking up trash”
happens in DC all the time.
LikeLike
Brent
I can’t figure out why increasing immigration is off the table… Fixes the demographic imbalance and is a lot less painful than tax increases / benefit cuts.
Not only that but it would increase Hispanic support for Republicans. I call it cutting off your nose to spite your face. The same thing happened in the health care debate. Dems wanted to open up the exchanges (not the subsidies) to immigrants but R’s demagogued it so bad they backed down. So we all pay for their ER care instead of having them pay their own way.
LikeLike
CA has excellent trash collection services and just because San Diego is close to the border doesn’t mean they hire illegals to do the job. Most of the illegals work in construction and farming. If it’s possible to pay under the table that’s where they work.
LikeLike
There’s a new Victoria’s Secret store at Cowboys Stadium for pete’s sake.
Aside from Tom Landry rolling over in his grave, at least now we know where the Cowboys get their offensive lineman from.
http://www.dallasnews.com/sports/dallas-cowboys/headlines/20121001-photos-see-flashes-of-new-victoria-s-secret-store-at-cowboys-stadium.ece
LikeLike
lms
I didn’t mention illegals in my post, just that it seems unlikely to me that this close to the border in CA the trash guy is unlikely to actually be a 250 pound middle aged black guy.
LikeLike
Not endorsing this but putting it out there as being of interest:
“Banks Should Leave New York Due to ‘Constant Hostility’: Bove”
http://www.cnbc.com/id/49258398
LikeLike
lms — you might find this interesting. it picks up on our conversion on drug pricing. it’s cash only doc’s office. note the transparency. prices listed up front.
http://www.modernmedicine.com/modernmedicine/article/articleDetail.jsp?id=652945&pageID=1&sk=&date=
LikeLike
banned
Okay, just thought you were implying something else. I still don’t get it though. CA is majority Hispanic now I think so they work in all sorts of jobs. It’s a touchy subject for me as I love Mexico, it’s people and the language. We haven’t been down there in several years because of the violence as we don’t do the more protected touristy areas, and I hate what’s happening there. I also hate the way they’ve been treated in places like Arizona and even my own little assbackwards city council here. Sorry if I jumped the gun.
LikeLike
lms
That’s ok I wasn’t implying that they are illegals but like immigrants of all nationalities who came here, they migrate to the hardest jobs that natives don’t want to do first.
LikeLike
Nova, I would so go to a clinic like that. There is a real need for this I think as he obviously found out.
The day the article ran, there were 200 appointments scheduled.
I had an interesting call from our insurance provider earlier today. I’ve actually had about three calls in the last six months relative to a routine check-up and follow through on some of the diagnosis and treatment I’ve received this year. In all my years I’ve never once had an insurance company call me……………….until now. It’s very weird. Today they were calling to see if I might fall into a chronic care management situation and after we discussed everything that’s happened to me this year (she spent a lot of time asking questions and even opinions), she realized I don’t actually have a chronic condition. Part of the confusion was from being misdiagnosed twice. Anyway, that must be something new and I thought it was really interesting.
Our insurance goes up another 11% this year for a worse policy. It was funny reading that $45 office visit charge, that’s my new co-pay (it was $40 last year) and the cash customer cost where I go is only $32.
LikeLike
this is the type of thing i’m talking about in the “routine/minor” care. clinics and the like.
disease management is sort of what a lot of people are putting faith in — kind of a patient compliance push. ACA has some money for it, but i don’t recall the specifics
LikeLike
Nova
this is the type of thing i’m talking about in the “routine/minor” care. clinics and the like.
Yes, I think I’ve said before I agree with that. A lot of us are being forced into high deductible plans anyway and I’d rather pay less for the insurance and pay my own way except on the really big stuff then pay my deductible. The problem is that right now we have the worst of both worlds, high premiums and high deductibles. That doesn’t really work for us as we don’t have much left over for medical after our $1800/mo premium, and we’re not alone. It’s our age group, the 60 – 65 demographic is a killer.
LikeLike
Let me just put it this way………………..and I’m being perfectly honest here. Our insurance cost us $19,200 last year and we spent a little over $15,000 on hospital and medical bills, so far. That’s about half of our (edit: pre-tax) profit from the business and we lost another $12,000 on rental income from the first eviction, just our bad fortune it all happened in the same year. Luckily, we have money set aside for these kinds of emergencies but not everyone is that lucky and it’s what keeps a lot of us awake at night and some of them away from the doctor. It’s also the reason many of us nearing Medicare hold off on certain things like back or knee surgery until we’re 65. I’m doing it myself now, I need some fairly expensive foot surgery and I’m sure as hell not doing it now if I can wait 2 1/2 years…………………………told you I was going to be honest.
LikeLike
Forgot about this one. PPACA’s 3.8% tax on investment income above a threshold.
It’s to capture the net tax on OSADI which is now only applicable to wages but in unlimited amounts. It’s actually a table leveler to close the rate differential between earned and unearned income. It’s being demagogued as a real estate transaction tax which it isn’t because the exemptions on those sorts of capital gains are pretty high.
LikeLike
you’re buying on the individual market? or small group?
either way — it’s a disaster.
LikeLike
Small group and you’re right. A lot of our friends are in the same boat, as most of them are small business owners in the same age group as we are.
A really good friend of ours who used to live behind us lost everything. All his money, his wife to cancer, his business and finally his home. That’s why we feel luckier than some so I don’t like to sound as though I’m complaining for myself…………….we can weather the storm……….others not so much.
LikeLike
A really good friend of ours who used to live behind us lost everything. All his money, his wife to cancer, his business and finally his home.
That is the tragedy of our health care system that reform should be eliminating. Nobody should go broke because they got sick.
LikeLike
Yello
The thing that bothers me is that so many people just say we should all plan ahead for these kinds of things but the reality is that most of us don’t make enough money in our lifetimes to prepare for some of these illnesses and the costs associated with them. And another thing I both hear and read a lot is that people aren’t taking good enough care of themselves and a lot of times the ones saying it have really just been lucky (so far). There are lots of things we can do to maximize our health, I know because I’ve pretty much done all of them, and you can still get sick as the proverbial dog.
LikeLike
The thing that bothers me is that so many people just say we should all plan ahead for these kinds of things but the reality is that most of us don’t make enough money in our lifetimes to prepare for some of these illnesses and the costs associated with them
Too many people see an unpreventable illness as some sort of moral failing or an Act Of God. The whole point of universal coverage is to spread the risk around the largest sample size possible, everybody.
LikeLike
Changing subjects here’s an AP story.
http://hosted.ap.org/dynamic/stories/U/US_GOP_ROMNEY_WORRIES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
LikeLike
“lmsinca, on October 2, 2012 at 12:43 pm said:
…
The same thing happened in the health care debate. Dems wanted to open up the exchanges (not the subsidies) to immigrants but R’s demagogued it so bad they backed down. So we all pay for their ER care instead of having them pay their own way.”
This only saves money over ER care if they aren’t eligible for the exchange subsidies, which to be fair was the Democrats position if I recall correctly. However without the subsidies the expectation was that the insurance cost would be too high for most of them.
Paul Krugman is right about this. You can either have a broad welfare state or open immigration, but not both. For myself, I’d prefer more immigration and less welfare state.
LikeLike
“lmsinca, on October 2, 2012 at 1:16 pm said:
Nova, I would so go to a clinic like that. There is a real need for this I think as he obviously found out.”
If we ever go to single payer, I expect to see more of this bifurcation of the health care system, similar to the split between public schools and private schools. Medicaid for all for the masses and cash only for those who can afford to opt out.
LikeLike
“yellojkt, on October 2, 2012 at 3:03 pm said:
The thing that bothers me is that so many people just say we should all plan ahead for these kinds of things but the reality is that most of us don’t make enough money in our lifetimes to prepare for some of these illnesses and the costs associated with them
Too many people see an unpreventable illness as some sort of moral failing or an Act Of God. The whole point of universal coverage is to spread the risk around the largest sample size possible, everybody.”
The counter point is that insurance should cover unforeseen events, such as cancer, not routine health care. Preventable illnesses based on behavior should be priced into the premium model, which isn’t the case in most single payer models.
The News Hour ran a similar story last night on the changes to Medicaid, with a pretty sympathetic case cited as an example:
http://www.pbs.org/newshour/bb/health/july-dec12/medicaid_10-01.html
The flip side is I don’t feel a moral obligation to subsidize these people:
LikeLike
Romney does better with specifics:
LikeLike
Two different dynamics on voter cynicism:
2012
vs
2010
LikeLike
From PL:
“The debate question Andrew Sullivan wants asked of Mitt Romney:
What are the main differences between your domestic and foreign policies and those of the last Republican president, George W. Bush?”
A more delicate question might be what are the differences between the last Republican preisdent, and the current one.
LikeLike
jnc
This only saves money over ER care if they aren’t eligible for the exchange subsidies, which to be fair was the Democrats position if I recall correctly. However without the subsidies the expectation was that the insurance cost would be too high for most of them.
I don’t remember reading anyone saying the insurance costs would be too high and that was the reason for basically taking the illegals off the table. I just remember thinking it was a dumb move. I don’t have time to go back and do the research right now though.
I agree with your comment about immigration over welfare. We know several people who took advantage of the last real amnesty we had and it was a godsend for them and their families. One family in particular has two sons in college now and their father went on to graduate from college and become a radiology tech. One of the problems with what we’re doing now is the lack of incentive for well intentioned people, especially their children, to reach their potential.
Regarding the “Heart Attack Grill”, I personally have no use for places like that. But by the same token most people I know have the bad habit or two, so I think it’s difficult to factor into medical insurance everyone’s eating, drinking, smoking, drug habits, lack of exercise, etc.
LikeLike
I have an Open Debate post ready to go up tomorrow afternoon so if any of you are going to be around I hope you’ll stop by and comment. There are at least a few of us planning on being here.
LikeLike
I was going to try and avoid the debates as they have no impact on my vote and as Gary Johnson is excluded. However, in support of your efforts I may stop by.
LikeLike
“lmsinca, on October 2, 2012 at 6:44 pm said:
“Regarding the “Heart Attack Grill”, I personally have no use for places like that. But by the same token most people I know have the bad habit or two, so I think it’s difficult to factor into medical insurance everyone’s eating, drinking, smoking, drug habits, lack of exercise, etc.”
With single payer absolutely. With regards to private insurance this can be done the same way that various factors are taken into account when underwriting home owners or auto insurance for risk factors.
My main purpose with the Heart Attack Grill example was to illustrate the opposite end of the sympathy continuum when it comes to subsidizing someone’s health care/insurance costs. There’s a part in the video at about 5:33 where a guy talks about how he’s on cholesterol medication anyway when justifying his choice of entrees.
As a Libertarian, I feel he’s perfectly free to make whatever food choices he wishes, but I don’t feel obligated to subsidize the medical cost of them. With single payer, the temptation will be to ban things like fatty foods to reduce the “cost to society” and the impact on the federal health care budget.
LikeLike
There’s a part in the video at about 5:33 where a guy talks about how he’s on cholesterol medication anyway when justifying his choice of entrees.
Ugggghhh. There’s a show my husband clicks to sometimes called “Man vs. Food”, I think. Terrible, but like you I don’t expect to control everyone’s bad habits. I understand your objection to single payer in this regard but I still think it’s the best way to control costs and cover everyone. There’s no perfect solution.
Thanks re the debate.
LikeLike
This piece is a pretty devastating takedown of what a shoddy piece of political work this suit is:
“It is the first case to emerge from the Residential Mortgage-Backed Securities Working Group, led by Mr. Schneiderman, which was formed in January.
Yet it contains little new information about how Wall Street bundled together several poorly underwritten subprime mortgages and sold them to investors on the promise that they were safe investments. And as a civil case, it may result in a finding of a violation, but that would come only after years of discovery and legal maneuvering.
Indeed, the complaint filed by Mr. Schneiderman quotes information from, among other sources, the Financial Crisis Inquiry Commission’s report issued two years ago to show how mortgage underwriting standards were largely ignored by Bear Stearns.
The claimed losses from the instruments issued in 2006 and 2007 total approximately $22.5 billion. That is not insignificant but hardly makes Bear Stearns the worst offender, or a unique actor in this area.”
http://dealbook.nytimes.com/2012/10/02/in-the-j-p-morgan-suit-a-lack-of-new-news/
LikeLike