Political pundits are having a field day proclaiming the reasons for the election results. One of the main topics seems to be the public's rejection of the administrations policies. In polls the individual actions are mainly approved of. Even in the much maligned health care bill the various features that folks are asked about are given positive comments. In spite of all that the overall reaction has been negative. What can account for that?
In my estimation the reason is that the Republican noise machine, Limbaugh, Hannity, Beck, and a group of strident female screamers, has so overloaded the media, both TV and print media, that people, who have severe problems financially and are scared to begin with, are panicked by the barrage of distorted information. Then the self righteous Tea Parties proclaim the programs designed to solve the recession as wasteful spending (where have they been the past ten years?) and the government as Socialistic (because it is trying to mitigate the ravages of the Republican created meltdown) and vowing to curtail the size of government and lower taxes.
With all the above it is small wonder that people, who aren't capable of , or don't take the time, to think the matter through react in rage to the "solution" of "throw the bums out". By and large that is a valid solution except the wrong bums got tossed. At least not enough of them got sacked. There certainly are Democrat duds also. To revert to the Republican party for relief however demonstrates the short sightedness of the electorate. At least with the Democrats in control things would have had a chance to move forward despite Republican resistance, now there is no chance for a quick recovery because the Republicans will stall thing for the next two years in order to deprive Obama of any semblance of success. Despicable as that is it appears to be the game plan. That is not hypothetical, that is the avowed aim of Mitch McConnell and Boehner. They are entitled to an opinion but not at the expanse of millions of struggling citizens.
In review it is obvious that the so called "conservative" movement is one of those ideological cults that latches onto a mantra such as " smaller government and lower taxes" and uses it to bemuse many into believing that will solve problems, when in fact it has been the cause of severe damage to the economy and the degradation of our critical infrastructure. The prime example of that is the Bush tax cuts during two costly simultaneous wars. Johnson did the same thing during the Vietnam War, although he didn't lower taxes he didn't raise them to pay for the war either. This lead quickly to high inflation that took years to correct.
In addition to all the shenanigans of both parties we have a supreme court that is out in right field. First it enabled Bush to grab the White House. Now it has allowed corporate funds to buy representatives. Obviously there is a lot of work to do. Unfortunately there is no one on the horizon likely to do it. I could fantasize about a James Bond Martini Party ---Shaken, not stirred
Sunday, November 28, 2010
Friday, November 26, 2010
The current impasse
With changes due to the recent election it is now more difficult for Obama to get things done. What stands out is the blatant avowal of the Republicans to work solely for Obama's defeat in 2012. That means they will support no proposal that could be of credit to Obama. In the present need for recovery from the Republican induced meltdown,
with millions of people in dire financial circumstances, homes lost, jobs lost, and the misery that goes with those calamities, the Republican machine is adamant that it will say NO to any initiative that could be construed as a credit to Obama.
They feel so strongly that they should be in control that they will sacrifice the well being of millions of Americans to achieve their obsessive goal. That will be two more years of stagnation and gridlock unless Obama caves in and lets them run the show.
Gingrich tried this with Clinton and got knocked on his ass. Hopefully that scenario will repeat.
My notion is that the President should appeal directly to the electorate and condemn the Republican hubris. Both Republicans and Democrats are honor bound to protect the welfare of the country, not attempt to insure their own reelection. To me it is plain treason to distort the governance for party gain
with millions of people in dire financial circumstances, homes lost, jobs lost, and the misery that goes with those calamities, the Republican machine is adamant that it will say NO to any initiative that could be construed as a credit to Obama.
They feel so strongly that they should be in control that they will sacrifice the well being of millions of Americans to achieve their obsessive goal. That will be two more years of stagnation and gridlock unless Obama caves in and lets them run the show.
Gingrich tried this with Clinton and got knocked on his ass. Hopefully that scenario will repeat.
My notion is that the President should appeal directly to the electorate and condemn the Republican hubris. Both Republicans and Democrats are honor bound to protect the welfare of the country, not attempt to insure their own reelection. To me it is plain treason to distort the governance for party gain
Tuesday, June 22, 2010
Who pays the bill?
Who or what is financing all the arms and ammunition that goes into Gaza and Afghanistan? Obviously the stuff isn't manufactured on site but is smuggled in through porous borders. Is this part of the U.S. arms industry? Many counties make guns and stuff but who pays for them? No one comments on this matter so it must be hush hush.
Now McCrystal is being called on the carpet for telling it like it is in A'stan.
That is such a screwed up mess. Naturally the Afghans are hedging their bets on what happens when the U.S.and U.N. pulls out. Perhaps we should simply pull out with the understanding that if AlQueda or any other belligerent of the U.S. regroups we will drone them out of existence. That no doubt is simplistic but it beats the present fiasco.
The "intellectual" conservative (how did he get in there?)syndicated columnist Charles Krauthammer, manages to both praise and condemn Obama. K obviously respects O's intelligence but can't help putting the conservative vitriol into the discussion. His biggest gripe is that we are not exploiting the Alaska North Shore for oil. He simply says, if we are going to inevitably pollute let's do it where there are no people affected. What a cynical outlook! But that is the conservative frame of mind for you. He rightly states we are stuck with the need for oil for many decades yet but derides any attempt to begin the transition away from that. It has to begin sometime. The sooner the better. Tom Friedman quotes a writer who puts the blame where it belongs, on us. We are the ones who are going to have to adapt to a less petroleum based economy---from gas and oil to plastic bags and all the petroleum based products in between. Lots of luck. I'll never see it.
Another conservative "intellectual" George Will is now distorting history to demonize the liberal agenda. His Straussian reference is typical jabberwocky when one attempts to discredit an opponent's idea. (Strauss was Wolfowitz' mentor, and we know how that turned out) The New Deal was not intended to be perpetual but when attempts were made to limit the "dole" they were shelved by conservatives. Lockean "natural rights" have been touted s the bulwark of the conservative platform yet that philosophy was promulgated for an agrarian society and not the present corporatist society. Consequently it is necessary to enact regulations to restrain corporate greed.
With the Supreme Court ruling on "corporate rights" the corporatist are in the cat bird seat and the recently enacted Campaign Finance Bill makes it laughably easy for lobbyist to buy all the votes needed. Hopefully the matter of "push coming to shove" will be realized by enough people fed up with the destruction of our Democracy to unite in a populist movement to take back our government. The Tea-baggers use that
same argumentation against the supposed Socialistic trend of Obama's but there is a decided difference: the Tea-baggers are financed by the corporations that are only intent on disabling the reforms Obama intends. The corporatists are concerned only with ever more profits for the plutocracy. The populists want the common good to prevail.
In previous blogs I questioned where the money went and how do certain agencies get to skim so much money off each transaction? Those are legitimate questions that need answers.
Now McCrystal is being called on the carpet for telling it like it is in A'stan.
That is such a screwed up mess. Naturally the Afghans are hedging their bets on what happens when the U.S.and U.N. pulls out. Perhaps we should simply pull out with the understanding that if AlQueda or any other belligerent of the U.S. regroups we will drone them out of existence. That no doubt is simplistic but it beats the present fiasco.
The "intellectual" conservative (how did he get in there?)syndicated columnist Charles Krauthammer, manages to both praise and condemn Obama. K obviously respects O's intelligence but can't help putting the conservative vitriol into the discussion. His biggest gripe is that we are not exploiting the Alaska North Shore for oil. He simply says, if we are going to inevitably pollute let's do it where there are no people affected. What a cynical outlook! But that is the conservative frame of mind for you. He rightly states we are stuck with the need for oil for many decades yet but derides any attempt to begin the transition away from that. It has to begin sometime. The sooner the better. Tom Friedman quotes a writer who puts the blame where it belongs, on us. We are the ones who are going to have to adapt to a less petroleum based economy---from gas and oil to plastic bags and all the petroleum based products in between. Lots of luck. I'll never see it.
Another conservative "intellectual" George Will is now distorting history to demonize the liberal agenda. His Straussian reference is typical jabberwocky when one attempts to discredit an opponent's idea. (Strauss was Wolfowitz' mentor, and we know how that turned out) The New Deal was not intended to be perpetual but when attempts were made to limit the "dole" they were shelved by conservatives. Lockean "natural rights" have been touted s the bulwark of the conservative platform yet that philosophy was promulgated for an agrarian society and not the present corporatist society. Consequently it is necessary to enact regulations to restrain corporate greed.
With the Supreme Court ruling on "corporate rights" the corporatist are in the cat bird seat and the recently enacted Campaign Finance Bill makes it laughably easy for lobbyist to buy all the votes needed. Hopefully the matter of "push coming to shove" will be realized by enough people fed up with the destruction of our Democracy to unite in a populist movement to take back our government. The Tea-baggers use that
same argumentation against the supposed Socialistic trend of Obama's but there is a decided difference: the Tea-baggers are financed by the corporations that are only intent on disabling the reforms Obama intends. The corporatists are concerned only with ever more profits for the plutocracy. The populists want the common good to prevail.
In previous blogs I questioned where the money went and how do certain agencies get to skim so much money off each transaction? Those are legitimate questions that need answers.
Thursday, March 11, 2010
Bond Raters
Finally there is some action against the bond raters, S&P,and Moody's.
The CT Attorney General, Richard Blumenthal has charged them with knowingly assigning false ratings to complex investments that helped push the country into deep recession.
Early on in the meltdown I questioned the liability of the raters for their AAA ratings of the risky mortgages that were securitized into bonds and sold internationally. Why it has taken so long for this to come out is still a puzzle. Several pension funds have lost many hundreds of thousands of dollars due to the misrepresentation. The raters claim it was a case of meeting the competition for the business. They were paid handsomely for the AAA ratings and to me that makes them culpable in a fraudulent scheme.
In Ohio a similar case was brought. There the judge ruled the raters were not liable for obscure reasons. That seems a miscarriage of justice to me. The raters more or less confessed to not checking the products involved and their motive was simply the profitable business they obtained without regard to the consequences for investors who relied on their ratings. Hopefully that ruling will be overturned by a higher court.
The CT Attorney General, Richard Blumenthal has charged them with knowingly assigning false ratings to complex investments that helped push the country into deep recession.
Early on in the meltdown I questioned the liability of the raters for their AAA ratings of the risky mortgages that were securitized into bonds and sold internationally. Why it has taken so long for this to come out is still a puzzle. Several pension funds have lost many hundreds of thousands of dollars due to the misrepresentation. The raters claim it was a case of meeting the competition for the business. They were paid handsomely for the AAA ratings and to me that makes them culpable in a fraudulent scheme.
In Ohio a similar case was brought. There the judge ruled the raters were not liable for obscure reasons. That seems a miscarriage of justice to me. The raters more or less confessed to not checking the products involved and their motive was simply the profitable business they obtained without regard to the consequences for investors who relied on their ratings. Hopefully that ruling will be overturned by a higher court.
Saturday, February 20, 2010
Bond Raters and other issues
In a previous blog I raged about the three bond raters, S&P, Moodys, and Fitch. Since then I've found that a few states have instituted law suits against the outfits. As I read the accounts the judge, Kaplan, I think, quibbled about the status of the raters in the debacle. He indicated that because they weren't the originators of the mortgages they weren't culpable. That,to me,is ridiculous. I conceive of their job as investigators assessing the value of the product. If they bothered to even look into the matter, it would have been clearly evident that there was great risk involved and they should have rated the securitized mortgage bonds as very low grade, junk, instead they prostituted themselves by "selling" the AAA rating. That is pure malfeasance.
That type of shenanigan multiplied a zillion times throughout the financial market is what brought down the house of cards. Now our economy is shattered and almost dead in the water. Spending vast sums, of taxpayer money, to recapitalize the banks and humongous insurance companies was supposed to "prime" the pump and get the economy jump started. Unfortunately the damage had been done and there was no magic formula to change it. Add to that the collapse of the auto industry, add to that the dire straights of most of the state treasuries and you've got one helluva mess.
The resulting unemployment brings the consumer spending to a halt. This in turn leads to greater unemployment as businesses fire employees. The lack of business activity causes a tremendous loss of tax revenue further intensifying the state and federal deficits. Is that the death spiral referred to? Stimulus spending has been an attempt to slow or reverse the free fall and to some extent has prevented a full scale depression. States have been aided, teacher cuts have been averted, as well as firemen and police. Some infrastructure work has been initiated, both to remedy needed repairs and give some employment. For the unemployed the unemployment benefits have been extended to unprecedented periods. All this has been of great value but at tremendous cost. Rather than appreciate the great value however the naysayers have harped on the cost and projected the great bogeyman of horrific debt.
The resulting fear and frustration has caused a backlash that, though understandable,is not at all constructive. At a time when unity and cooperation is most needed we are engaged in the most destructive kinds of behavior. Principally the Republicans have seized on the crisis to tear down Obama and the Democrats instead of rising to the occasion to solve the problems. Considering it was on their watch that the epidemic was incubated and blossomed it is ingenuous of them to act the way they do.
All of the above is plenty of tragedy. It is becoming more and more apparent that we have a very serious problem caused by business interests both big and small that are exerting tremendous pressure on legislators and judges to weaken laws that protect the public from rapacious business practices. This is occurring in several states and has been demonstrated at the Supreme Court level by recent decisions. There is no doubt about it, our democracy is in danger of becoming unraveled. The Tea Partyers have railed against taxes and the size of government but unless we get a handle on this trend in the courts there won't be any thing to tax or government to rail against
That type of shenanigan multiplied a zillion times throughout the financial market is what brought down the house of cards. Now our economy is shattered and almost dead in the water. Spending vast sums, of taxpayer money, to recapitalize the banks and humongous insurance companies was supposed to "prime" the pump and get the economy jump started. Unfortunately the damage had been done and there was no magic formula to change it. Add to that the collapse of the auto industry, add to that the dire straights of most of the state treasuries and you've got one helluva mess.
The resulting unemployment brings the consumer spending to a halt. This in turn leads to greater unemployment as businesses fire employees. The lack of business activity causes a tremendous loss of tax revenue further intensifying the state and federal deficits. Is that the death spiral referred to? Stimulus spending has been an attempt to slow or reverse the free fall and to some extent has prevented a full scale depression. States have been aided, teacher cuts have been averted, as well as firemen and police. Some infrastructure work has been initiated, both to remedy needed repairs and give some employment. For the unemployed the unemployment benefits have been extended to unprecedented periods. All this has been of great value but at tremendous cost. Rather than appreciate the great value however the naysayers have harped on the cost and projected the great bogeyman of horrific debt.
The resulting fear and frustration has caused a backlash that, though understandable,is not at all constructive. At a time when unity and cooperation is most needed we are engaged in the most destructive kinds of behavior. Principally the Republicans have seized on the crisis to tear down Obama and the Democrats instead of rising to the occasion to solve the problems. Considering it was on their watch that the epidemic was incubated and blossomed it is ingenuous of them to act the way they do.
All of the above is plenty of tragedy. It is becoming more and more apparent that we have a very serious problem caused by business interests both big and small that are exerting tremendous pressure on legislators and judges to weaken laws that protect the public from rapacious business practices. This is occurring in several states and has been demonstrated at the Supreme Court level by recent decisions. There is no doubt about it, our democracy is in danger of becoming unraveled. The Tea Partyers have railed against taxes and the size of government but unless we get a handle on this trend in the courts there won't be any thing to tax or government to rail against
Thursday, February 4, 2010
GOP Denial
My View
The Republicans seemed to be oblivious to reality and are being as obstructive as they can possibly be.
They act as though it was a huge fluke that they were totally rejected because of their dismal record.
Their propaganda army is working overtime to demonize every effort at recovery. After years of building a huge deficit they are suddenly aghast at how much money is being spent --even when that money is going into programs to solve Republican created problems. Apparently Republicans are so ashamed of their own failures they are bent on seeing Obama fail. That is not the role of a loyal opposition.
With the Obama Administration attempting to prevent an out right depression and shepherd through Congress the most ambitious legislative program in decades, it is mired in two unwanted wars and the financial meltdown.
For over eight year’s now we have seen a rather extraordinary scenario played out. First of course was the tragedy of 9/11 . Second was the collapse of the world’s most vibrant economy. And even more improbable was the election in America of a black president.
Eight years previously the Republicans gained the White House under a cloud of controversy that was eventually resolved by the Supreme Court. That was unprecedented in our country’s history.
The government’s budget was running a sizable surplus and we were not at war. The 9/11 attack threw the country into a panic and conservatives capitalized on this event to further an ambitious, but ill conceived, agenda. Very quickly we counterattacked and overcame the Taliban regime that had harbored AlQueda.
While the matter was still in doubt the decision was made to attack Iraq. It is most likely that that decision was based on faulty information and fabrication of unfounded accusations of weapons of mass destruction.
Attacking Iraq was a fatally flawed attempt to transform the Middle East
Quickly the budget surplus vanished in a rush of war related expenditures . Were taxes raised to cover these extraordinary costs ?. Of course not. That would be too rational for a Neo-con administration. Instead there was a massive tax reduction which benefited the top 1% very handsomely.
Also during the eight Republican years other measures were issued that inordinately benefited large corporations. Much of the country’s protective acts such as Clean Water, Clean Air, and environmental protection were modified or eviscerated by executive orders at the urging of corporate lobbyists..
At the same time those regulations were being dismantled financial regulations were drastically lessened . To look good Bush’s administration pushed forcefully for increased home ownership as a proof of the economy’s vitality. This in turn led to FannyMay and FreddieMac being over extended and still suffering.
The wizards of Wall Street, especially the mortgage brokers, concocted “creative” schemes to facilitate easy mortgage acquisitions. People who under normal banking regulations couldn’t qualify for a mortgage were conned into signing up for homes they had no business buying.
The perpetrators of these fraudulent schemes either didn’t know or didn’t care that those mortgages were ultra high risk . They simply bundled them and sold them as securities or bonds around the world. The bond rating agencies namely Standard and Poor, Moodys, and Fitch gave these bonds AAA ratings. Those bonds were really the lowest order of junk bonds, if even ratable at all. This is pure malfeasance that should eventually be prosecuted.
Obama has made numerous overtures at getting a bipartisan atmosphere established. He has been rebuffed by the obdurate Republicans at every turn. Stupid issues have been raised such as Obama’s birthplace. He’s accused of being both a Marxist and a Fascist. Two diametrically opposed ideologies. His hidden agenda is Muslim world domination. In America fortunately a person can say what ever he cares to . Equally fortunate is the fact that people can tell stupid from the truth .
Americans can face facts and deal with them in a rational manner. Ideology appeals to some but in the final analysis it is the rational and practical that carry the day.
The facts are that we’re in a serious financial crisis that can be overcome. It will take time and many of us will suffer for a while. We must make the best of it and do what we can to hasten the recovery. Negativity is counterproductive and needs to be shunned. Republicans created the problems, they are certainly not the answer.
Obama has at least three more years to bring things around. Let us be good citizens and do our part to aid the cause.
The Republicans seemed to be oblivious to reality and are being as obstructive as they can possibly be.
They act as though it was a huge fluke that they were totally rejected because of their dismal record.
Their propaganda army is working overtime to demonize every effort at recovery. After years of building a huge deficit they are suddenly aghast at how much money is being spent --even when that money is going into programs to solve Republican created problems. Apparently Republicans are so ashamed of their own failures they are bent on seeing Obama fail. That is not the role of a loyal opposition.
With the Obama Administration attempting to prevent an out right depression and shepherd through Congress the most ambitious legislative program in decades, it is mired in two unwanted wars and the financial meltdown.
For over eight year’s now we have seen a rather extraordinary scenario played out. First of course was the tragedy of 9/11 . Second was the collapse of the world’s most vibrant economy. And even more improbable was the election in America of a black president.
Eight years previously the Republicans gained the White House under a cloud of controversy that was eventually resolved by the Supreme Court. That was unprecedented in our country’s history.
The government’s budget was running a sizable surplus and we were not at war. The 9/11 attack threw the country into a panic and conservatives capitalized on this event to further an ambitious, but ill conceived, agenda. Very quickly we counterattacked and overcame the Taliban regime that had harbored AlQueda.
While the matter was still in doubt the decision was made to attack Iraq. It is most likely that that decision was based on faulty information and fabrication of unfounded accusations of weapons of mass destruction.
Attacking Iraq was a fatally flawed attempt to transform the Middle East
Quickly the budget surplus vanished in a rush of war related expenditures . Were taxes raised to cover these extraordinary costs ?. Of course not. That would be too rational for a Neo-con administration. Instead there was a massive tax reduction which benefited the top 1% very handsomely.
Also during the eight Republican years other measures were issued that inordinately benefited large corporations. Much of the country’s protective acts such as Clean Water, Clean Air, and environmental protection were modified or eviscerated by executive orders at the urging of corporate lobbyists..
At the same time those regulations were being dismantled financial regulations were drastically lessened . To look good Bush’s administration pushed forcefully for increased home ownership as a proof of the economy’s vitality. This in turn led to FannyMay and FreddieMac being over extended and still suffering.
The wizards of Wall Street, especially the mortgage brokers, concocted “creative” schemes to facilitate easy mortgage acquisitions. People who under normal banking regulations couldn’t qualify for a mortgage were conned into signing up for homes they had no business buying.
The perpetrators of these fraudulent schemes either didn’t know or didn’t care that those mortgages were ultra high risk . They simply bundled them and sold them as securities or bonds around the world. The bond rating agencies namely Standard and Poor, Moodys, and Fitch gave these bonds AAA ratings. Those bonds were really the lowest order of junk bonds, if even ratable at all. This is pure malfeasance that should eventually be prosecuted.
Obama has made numerous overtures at getting a bipartisan atmosphere established. He has been rebuffed by the obdurate Republicans at every turn. Stupid issues have been raised such as Obama’s birthplace. He’s accused of being both a Marxist and a Fascist. Two diametrically opposed ideologies. His hidden agenda is Muslim world domination. In America fortunately a person can say what ever he cares to . Equally fortunate is the fact that people can tell stupid from the truth .
Americans can face facts and deal with them in a rational manner. Ideology appeals to some but in the final analysis it is the rational and practical that carry the day.
The facts are that we’re in a serious financial crisis that can be overcome. It will take time and many of us will suffer for a while. We must make the best of it and do what we can to hasten the recovery. Negativity is counterproductive and needs to be shunned. Republicans created the problems, they are certainly not the answer.
Obama has at least three more years to bring things around. Let us be good citizens and do our part to aid the cause.
The Health Care solution
The Friday, July 17 issue of the Cape Cod Times letters page contained a number of good pieces on the healthcare issue currently before Congress.
The “My View” argument was essentially that if you want the “very best” you have to expect to pay for it. It is a classical insurance industries scare tactic that they know resonates with uninformed people.
The MD’s letter is more to the point. The multiplicity of insurance plans , “approved” pharmaceuticals, exclusions, etc. make it unnecessarily complex for providers. The fact is, the administrative cost overburden does not does provide Health Care but rather impedes it.
As another writer states, the Medicare, Medicaid, Social Security and postal service’s are dependable and efficient. A single payer (governmental) healthcare program is in the same category .
Naturally the question arises: how do we pay for it? In spite of all the gobbledygook and hysteria over increased taxes the net cost would be far less than is currently wasted on exorbitant administrative salaries and campus like expanses of insurance companies.
Employers would be relieved of onerous insurance premiums. Yes, they’d pay more in taxes but that would be a fraction of their current health insurance premiums.
There are many modifications needed to the present Health Care non-system. Preventive care and increased personal responsibility in lifestyle is perhaps the most significant.
Some medical hype has been greatly oversold. There are many hardworking physicians, many are over worked , and they do a heroic job attempting to cope, however people have been conditioned to depend on doctors for the most trivial occurrences.75% of complaints are self limiting, perhaps up to 20% more can be handled by Physician assistants, (P A’s, specially trained nurses). Too many MDs go into specialties because the money is far better there. Those “specialists” are arguably way overpaid. This has come about largely due to insurance payment methods. Over the past 50 years fees have been regularly ratcheted up well beyond the inflation rate.
The current discussion of Health Care and his costs should put all the above on the table and let the light of objective evaluation shine on it. It is an epochal opportunity to correct a problem that has grown through neglect, and manipulative exploitation.
The single-payer solution would go far to ameliorate the situation.
The Friday, July 17 issue of the Cape Cod Times letters page contained a number of good pieces on the healthcare issue currently before Congress.
The “My View” argument was essentially that if you want the “very best” you have to expect to pay for it. It is a classical insurance industries scare tactic that they know resonates with uninformed people.
The MD’s letter is more to the point. The multiplicity of insurance plans , “approved” pharmaceuticals, exclusions, etc. make it unnecessarily complex for providers. The fact is, the administrative cost overburden does not does provide Health Care but rather impedes it.
As another writer states, the Medicare, Medicaid, Social Security and postal service’s are dependable and efficient. A single payer (governmental) healthcare program is in the same category .
Naturally the question arises: how do we pay for it? In spite of all the gobbledygook and hysteria over increased taxes the net cost would be far less than is currently wasted on exorbitant administrative salaries and campus like expanses of insurance companies.
Employers would be relieved of onerous insurance premiums. Yes, they’d pay more in taxes but that would be a fraction of their current health insurance premiums.
There are many modifications needed to the present Health Care non-system. Preventive care and increased personal responsibility in lifestyle is perhaps the most significant.
Some medical hype has been greatly oversold. There are many hardworking physicians, many are over worked , and they do a heroic job attempting to cope, however people have been conditioned to depend on doctors for the most trivial occurrences.75% of complaints are self limiting, perhaps up to 20% more can be handled by Physician assistants, (P A’s, specially trained nurses). Too many MDs go into specialties because the money is far better there. Those “specialists” are arguably way overpaid. This has come about largely due to insurance payment methods. Over the past 50 years fees have been regularly ratcheted up well beyond the inflation rate.
The current discussion of Health Care and his costs should put all the above on the table and let the light of objective evaluation shine on it. It is an epochal opportunity to correct a problem that has grown through neglect, and manipulative exploitation.
The single-payer solution would go far to ameliorate the situation.
Friday, January 22, 2010
Looking Back
My blog of just a year ago included my rage at the blatant malfeasance of the bond raters: Standard and Poor, Moodys, and Fitch. It was their blessing (AAA ratings) that gave cover to the risky securitized bundles of worthless mortgages that traders were peddling. This was a large part of the overall meltdown. Recently I read that Congress in its infinite wisdom chooses not to prosecute those miscreants. Too big to jail???? So far I haven't even seen a move to censure them. They almost put jaywalkers in jail but when it comes to creating a world crisis such dereliction of duty is overlooked????
Then the Supreme, supreme, Court overthrows campaign finance reform and allows corporations to spent the companies,(shareholder's), money on political campaigns.
It is obviously a political decision rather then a judicial one. Smacks of the vote by the Court to seat Bush in the controversial 2000 election. To me, the crux of the matter is that the corporations are given the status of "persons". If that were not the case the first amendment would not pertain and the "free speech" aspect would drop out. This ruling delights the Republicans as they are the party of the fat cats.
What it does in effect, is make it more egregious, how corporations dictate our legislation.
We are in the process of dedemocritizing our Democracy and removing the freedom from our "free market" Capitalism. All the "special interests' are stacking the deck in their own favor and the little guy be damned. How about the parable of "Killing the goose that lays the golden eggs"? Those assholes devastated the economy and then expected, and got, bailed out.
Here is, to me, a conundrum: The economy is on life support, where does the largess come from that allows banks to make record profits and pay those obcene bonuses?
What is there about our financial system that inculcates the attitude that the self styled "Masters of the Universe" are entitled to the exorbitant salaries and bonuses they demand? The important question is: Why do we allow ourselves to be ripped off so effortlessly? There is a law, unless the Supreme Court has repealed it too, that states "every action has a reaction". How long it takes for the law to take effect remains to be seen.
Then the Supreme, supreme, Court overthrows campaign finance reform and allows corporations to spent the companies,(shareholder's), money on political campaigns.
It is obviously a political decision rather then a judicial one. Smacks of the vote by the Court to seat Bush in the controversial 2000 election. To me, the crux of the matter is that the corporations are given the status of "persons". If that were not the case the first amendment would not pertain and the "free speech" aspect would drop out. This ruling delights the Republicans as they are the party of the fat cats.
What it does in effect, is make it more egregious, how corporations dictate our legislation.
We are in the process of dedemocritizing our Democracy and removing the freedom from our "free market" Capitalism. All the "special interests' are stacking the deck in their own favor and the little guy be damned. How about the parable of "Killing the goose that lays the golden eggs"? Those assholes devastated the economy and then expected, and got, bailed out.
Here is, to me, a conundrum: The economy is on life support, where does the largess come from that allows banks to make record profits and pay those obcene bonuses?
What is there about our financial system that inculcates the attitude that the self styled "Masters of the Universe" are entitled to the exorbitant salaries and bonuses they demand? The important question is: Why do we allow ourselves to be ripped off so effortlessly? There is a law, unless the Supreme Court has repealed it too, that states "every action has a reaction". How long it takes for the law to take effect remains to be seen.
Monday, January 18, 2010
Follow the Money
Follow the Money
The flow and distribution of money is a complex, and for most of us, mysterious phenomenon. The headlines scream that the banking industry has reverted to its risky ways that led to the financial melt down , The bonuses are back to, or a exceeding, previous periods. Where does the money come from? Wealth only derives from goods and services. Bankers obviously do not provide goods. They get paid for services Banks accept our money in savings and checking accounts for safekeeping. They, in turn, lend out that money at profitable rates of interest. They pay out pitifully small rates of interest in return. They charge for every service they provide. They also have stockholders who invest in the bank . Bank employees do not make magnificent salaries.
Apparently the cumulative effect of the numerous clients and their transactions is similar to a snowfall. Many small fees on a steady basis grows to enormous amounts very quickly. Some banks have paid back their bailout in short order .
This, too me, begs the question: Are we being charged too much for what we are getting?
What is the justification for such tremendous profits?. Why do those at the top of the financial food chain warrant such exorbitant incomes? Do they, except in their own thinking?
My conclusion is we are being played for suckers. They argue that they are the risk takers. There’s the rub . They feel safe taking those profitable risks because they have been assured through the FDIC and the government in general, that they will be bailed out of severe losses . So where is the risk ? Where is the “prudent man rule”?
The insurance industry is another financial omnivore . The profits generated are astronomical. Are they warranted? Probably not. To put it bluntly, the system is rigged in their favor .
Perhaps the biggest financial: glutton of all is the stock market. Salaries are six figure’s to begin with. On top of that , year end bonuses are equal to or greater than the salary.
Why is that? It appears that every one who deals with the stock market is getting ripped off.
The three industry’s mentioned above are all bound by legalities, regulations that don‘t regulate. Then there are the lawyers. They see the tremendous pools of cash lying about. Consequently their fees for services are astronomical also.
Although lawyers, doctors, dentists, etc are not unionized they are well organized and as such fall into the “special interest” category and exert their influence on legislation that protects their interests. In spite of the dire straights a large percentage of the population faces their fees continue to escalate faster then the cost of living index. Suggestions that those fees will be reduced in the future to help control costs are met with howls of protest and the legislators give in to them.
All us common folks can do is listen to politicians and candidates blather about how they are going to change things and protect us from the money grubbers. Unfortunately, once candidates get elected they become members of “the club “ and we are no better off, or worse.
The present administration is attempting to rein in the banking, insurance, and other finance industries as well as the broken Healthcare System. They deserve a chance to do it .
This post was sent to the paper but not published, probably because it steps on the toes of too many advertisers.
The flow and distribution of money is a complex, and for most of us, mysterious phenomenon. The headlines scream that the banking industry has reverted to its risky ways that led to the financial melt down , The bonuses are back to, or a exceeding, previous periods. Where does the money come from? Wealth only derives from goods and services. Bankers obviously do not provide goods. They get paid for services Banks accept our money in savings and checking accounts for safekeeping. They, in turn, lend out that money at profitable rates of interest. They pay out pitifully small rates of interest in return. They charge for every service they provide. They also have stockholders who invest in the bank . Bank employees do not make magnificent salaries.
Apparently the cumulative effect of the numerous clients and their transactions is similar to a snowfall. Many small fees on a steady basis grows to enormous amounts very quickly. Some banks have paid back their bailout in short order .
This, too me, begs the question: Are we being charged too much for what we are getting?
What is the justification for such tremendous profits?. Why do those at the top of the financial food chain warrant such exorbitant incomes? Do they, except in their own thinking?
My conclusion is we are being played for suckers. They argue that they are the risk takers. There’s the rub . They feel safe taking those profitable risks because they have been assured through the FDIC and the government in general, that they will be bailed out of severe losses . So where is the risk ? Where is the “prudent man rule”?
The insurance industry is another financial omnivore . The profits generated are astronomical. Are they warranted? Probably not. To put it bluntly, the system is rigged in their favor .
Perhaps the biggest financial: glutton of all is the stock market. Salaries are six figure’s to begin with. On top of that , year end bonuses are equal to or greater than the salary.
Why is that? It appears that every one who deals with the stock market is getting ripped off.
The three industry’s mentioned above are all bound by legalities, regulations that don‘t regulate. Then there are the lawyers. They see the tremendous pools of cash lying about. Consequently their fees for services are astronomical also.
Although lawyers, doctors, dentists, etc are not unionized they are well organized and as such fall into the “special interest” category and exert their influence on legislation that protects their interests. In spite of the dire straights a large percentage of the population faces their fees continue to escalate faster then the cost of living index. Suggestions that those fees will be reduced in the future to help control costs are met with howls of protest and the legislators give in to them.
All us common folks can do is listen to politicians and candidates blather about how they are going to change things and protect us from the money grubbers. Unfortunately, once candidates get elected they become members of “the club “ and we are no better off, or worse.
The present administration is attempting to rein in the banking, insurance, and other finance industries as well as the broken Healthcare System. They deserve a chance to do it .
This post was sent to the paper but not published, probably because it steps on the toes of too many advertisers.
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