Archive for December 1st, 2009

How The Rich Get Richer

Tuesday, December 1st, 2009

They get subservient, cretinous Democrats like Steny Hoyer to keep those estate tax thresholds high!

Let’s look at the figures, courtesy of the Tax Policy Center at Brookings:

How many people will pay estate tax in 2009? About 5,500 households contributing a total of $14 billion in tax, i.e. the richest .000018 of Americans.

How many would pay estate tax in 2010 if the Bush estate tax thresholds were allowed to expire? 44,000, i.e. the richest .00014 of Americans, who might pay $34 billion in tax.

What’s the hole in the budget to be blown if the current Bush estate tax thresholds are extended into the future? $234 billion over the next decade.

What might that pay for? Roughly 25% of the CBO projected cost of health care reform over the next decade.

Gorilla reaches the conclusion: “The rich are always with us, and getting richer, thanks to leaders like you, Steny!”

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Stupidity Runs Out Of Subsidy

Tuesday, December 1st, 2009

Once again, the utterly stupid tie between employment and health insurance comes back to haunt the unemployed!!!

Seems that, absent an extension by Congress (good luck with getting 60 votes for that while health care “reform” is still being debated), subsidies will run out that would enable unemployed workers to keep their health benefits for 9 months after losing their jobs.

Once the subsidies go, the cost of insurance skyrockets, to the point that in many states it will exceed the monthly unemployment benefit.

So, more Americans will be without health care, or faced to choose between health care and eating.

It’s for this reason that health care reform as currently proposed is both totally inadequate and totally nonsensical.

Unemployed workers who lose their health care will, once they’re poor enough, be able to apply for Medicaid, meaning the government will be paying for their health care either way. Of course, Medicaid coverage is very minimal, but at least it’s something.

So why not simply bring everyone into Medicare and break the tie once and for all with employment?

Because that would mean the end of richly profitable health insurance companies (although they could be allowed, as they are now with Medicare, to sell very lucrative supplemental policies), reduce health care costs by at least 30%, and give the American people control over their medical-industrial complex.

No chance of that happening anytime soon!

Gorilla thinks: “We’d like to be more compassionate, but stupidity always gets in the way!”

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Time To Flee, It’s CRE!

Tuesday, December 1st, 2009

Commercial real estate default rates are now at a 16 year high, and rising.

And guess who’s holding the bag? Why, banks, of course, who hold more than 80% of CRE loans coming due in the next 2 years.

They’ve tried to hide this on the balance sheet, either their own or the Fed’s, but the combination of high unemployment and low economic growth mean the inevitable wave of further foreclosures and defaults is coming.

Gorilla thinks: “Surf’s up, best to be a shark!”

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The Genius Ponders And Dithers

Tuesday, December 1st, 2009

Larry Summers says fighting unemployment will take time!

This remarkably acute perception of the obvious has yet to be complimented by anything resembling urgency.

When it’s clear that the stimulus wasn’t large enough, it should be time to spend more money on job creation, whether that’s through WPA-style government jobs, expanding unemployment and health care benefits for at least 2 years or guaranteeing state budget deficits to avoid layoffs.

But first a minor health care reform must be passed and an endless war in Afghanistan must be continued.

What is on offer instead is yet another pointless summit in which businesses will be asked to do more. They’ll say sure, if you bribe us, and unemployment will continue to rise.

Gorilla says: “Hard to figure out why it takes so many geniuses to do nothing!”

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