Archive for November 30th, 2009

More Nothing From CBO

Monday, November 30th, 2009

Wow, only another month of pointless Senate debate, a conference committee, and by 2013 we’ll have health care reform!!!

And what does the CBO say about all this?

The good news on health care reform:

Those currently buying insurance as individuals will see their benefits improve and their premium costs go up less steeply than presently.

The bad news on health care reform:

Those currently buying insurance as individuals represent only 17% of the market.

So, for the 72% of Americans who currently get their health care from their employers, premiums wouldn’t change very much at all.

Proving: the employer based health insurance system is good for everyone who has a job, although it keeps wages down and premiums continue to skyrocket.

Those who don’t have jobs or the self-employed or the bone idle or the working poor or those whose employers don’t offer health insurance continue to be screwed.

Single payer would have insured everyone, cut administrative costs substantially (they’re currently 30% of health care spending, or more accurately insurance company spending to cherry pick the healthy, which by the way will still be in place following health care “reform”), and kept premium increases reasonable.

But the medical-industrial complex would make a lot less money, particularly from prescribing and getting paid for treatments of dubious medical effectiveness, and that’s just plain unacceptable to the Washington leadership circles they’ve purchased.

Gorilla, whose own insurance is going up next year by 12%, has gone beyond being dismayed: “Reform today is bullshit by other means. We’ll all be in Medicare by the early 2020s, including me!”

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Mods With No Bods

Monday, November 30th, 2009

Here we go again, the government hasn’t had much luck convincing, cajoling, and/or bribing mortgage servicers to modify home loans permanently!

Not a surprise, since lowering interest rates without lowering principal owed, at a time of record foreclosures, homeowners under water, and high unemployment, is essentially a non-starter.

The easiest method to force the servicers and banks to the table is of course the one the Administration and Congress haven’t supported: allow bankruptcy court judges to alter loan terms as part of bankruptcy filings.

Lots of deals would be done then, but that requires goring the oxen who are buying and paying for our political leaders.

So, the dance continues, the bust continues, and the pain continues…

Gorilla says: “Not being serious is the new serious!”

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Financing Debt Is Risky!

Monday, November 30th, 2009

Who knew? Not the banks backing indoor ski slopes in Dubai!

Turns out the non-sovereign debt of Dubai won’t be guaranteed, a blow to those who naturally assumed from their experience in other badly indebted nations (USA, Ireland) that the government would come riding to the rescue!

So, Dubai’s a good lesson for some investors and banks, and yet another unlearned example of what happens when banks get too large to succeed and too large to fail.

Will this effect the dollar carry trade investments in emerging markets? Probably not, since no one in the world of financial services appears to understand the definition of risk.

Gorilla says: “Mohawk or pompadour, the haircuts will keep coming!”

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Doesn’t Matter 2 Or 10

Monday, November 30th, 2009

Iran will build 10 reactors, because they didn’t like our approach to the first 2!

Wow, guess this means they want nuclear weapons! But that was the conclusion after the first one, so it must be 10 times more likely now!

In fact, this is all part of an endless negotiation, the main points of which are to get the US less isolated from Iran and Iran less isolated from the rest of the world. Nobody’s going to war over Iran, including the Israelis, so there’ll be plenty of hiccups along the way. The only question is when high level, bilateral talks will begin.

Gorilla answers: “Early 2011, expect jaw jaw to take off!”

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Well, They Did Finance The Nazis

Monday, November 30th, 2009

So is banning minaret construction a big surprise from supposedly tolerant Switzerland?

Not really. Most European nations have an outsized fear of Islamic immigrants, mainly because they’ve done such a lousy job of integrating immigrants into their societies. You can’t take uneducated people from backward countries like Pakistan, do nothing much to bring them into the 21st century, and expect an immediate adoption of Western civilization.

Ghettoization remains the preferred choice over assimilation, much easier to keep an eye on the cauldron.

And of course it’s racist, but let’s recall that the Swiss and the other Western Europeans were hardly cordial to that other group of “others”, the Jews, and apparently haven’t learned one damned thing since.

Americans, led by the Know Nothing Party’s demonization of all those who are black, brown, or lacking a penis, have nothing to be proud about either!

Gorilla says: “Let’s just vote to tear down all the churches and start over again as human beings!”

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