Friday, January 1, 2010

Health Reform = Bailout in Disguise?

AIG and life insurance derivative Wall Streeters come to mind, when we explore those with the most to gain from the coming mandatory health insurance imposed upon Americans. All the while ARM problems (Adjustable Rate Mortgage) and the CRE crisis (Commercial Real Estate) have yet to be addressed, i.e. Wall Street NEEDS this bailout in the form of Health Reform to delay catastrophe a bit longer.

Economists at University of Missouri-Kansas City explain,

...Wall Street packages assets (home mortgages, commodities futures, and life insurance policies) so that gamblers can speculate on outcomes. If you lose your home through a mortgage delinquency, if food prices rise high enough to cause starvation, or if you die an untimely death, Wall Streeters make out like bandits.

Health insurance works out a bit differently: they sell you insurance and then the insurer denies your claim due to pre-existing conditions or simply because denial is more profitable and you probably don’t have sufficient funding to fight your way through the courts. You then go bankrupt (according to Steffie Woolhandler, two-thirds of US bankruptcies are due to healthcare bills) and Wall Street takes your assets and garnishes your wages.


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