November 2010

Health Care Bill Spurring "Mergers & Acquisitions" in Sector

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You're going to love this one. The New York Times is reporting that instead of reducing health care costs by the reform bill, Doctors, Hospitals and Insurance companies are merging and also using their new clout for lobbying against any regulations. That's right, a monopoly and we all know monopolies do not bring down costs. Even worse, we have predictions that the big winners will be offshore outsourcers on the health care technology front, also consolidating.

Currently, there are bonuses in the new health care law for those bringing down costs. So, instead of really bringing down costs, Hospitals, Doctors are consolidating. The New York Times:

Now, eight months into the new law there is a growing frenzy of mergers involving hospitals, clinics and doctor groups eager to share costs and savings, and cash in on the incentives. They, in turn, have deployed a small army of lawyers and lobbyists trying to persuade the Obama administration to relax or waive a body of older laws intended to thwart health care monopolies, and to protect against shoddy care and fraudulent billing of patients or Medicare.

Consumer advocates fear that the health care law could worsen some of the very problems it was meant to solve — by reducing competition, driving up costs and creating incentives for doctors and hospitals to stint on care, in order to retain their cost-saving bonuses.

Ireland Goes into the "Loving Arms" of the IMF for a Bail Out

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Ireland, is getting a bail out from the IMF as well as the European Central Bank.

The bailout would be in the tens of billions of euros, he said, adding that the final figure was subject to negotiations. Analysts and politicians have suggested that the size of the package may well approach €80 billion, or $109 billion.

Perhaps €15 billion would be set aside in a fund to support the country’s banks, which have been hemorrhaging deposits. An additional €60 billion or so would be allocated to Ireland itself so as to give it the flexibility of staying out of the bond markets.

Negotiations for the terms are not finalized but the New York Times implies the deal will have Greek like austerity measures. Bend over Ireland.

Mr. Cowen has said Ireland is already putting an adequate budget-cutting plan in place, but given the size of the bailout being discussed, it would be surprising if E.U. and I.M.F. officials did not demand more cuts, accompanied by tax increases.

“There will be a lot of pain for the taxpayer and a lot of people will lose their jobs,” said Michael Noonan, the chief economic spokesman for Fine Gael, the main opposition party.

Buffett Thanks "Uncle Sam" for Big Bailout Payday

Michael Collins

"Mr. Buffett. You are no different than Goldman Sachs and the other exploiters funded by the hard work of everyone other than those who reap the benefits of that work."

The people's oligarch Warren Buffett just wrote a thank you letter to "Uncle Sam" published in the New York Times. It is the height of cynicism. (Image)

Buffett has a carefully crafted public image as a brilliant but people-friendly master of investments. We hear about his regular table at an Omaha diner where he conducts business (just plain Warren) and we see his occasional public stands for reasonable policies like the inheritance tax.

He claims that "Uncle Sam", the government, saved us from a financial catastrophe that would have swallowed up his company. He then endorses the notion that the housing bubble was based on "mass delusion" - meaning it was our fault. But he forgets to mention that he took advantage of the 2008 crisis to purchase a $5 billion interest in Goldman Sachs. And he forgets whose money "Uncle Sam" stole from the Treasury to save him and the rest of his cronies. What a hypocrite.

Feds Preparing Insider Trading Charges

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The Wall Street Journal is reporting after a 3 year investigation, Federal Authorities are preparing charges. It's supposedly broad in scope.

The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.

The investigations, if they bear fruit, have the potential to expose a culture of pervasive insider trading in U.S. financial markets, including new ways non-public information is passed to traders through experts tied to specific industries or companies, federal authorities say.

One focus of the criminal investigation is examining whether nonpublic information was passed along by independent analysts and consultants who work for companies that provide "expert network" services to hedge funds and mutual funds. These companies set up meetings and calls with current and former managers from hundreds of companies for traders seeking an investing edge.

Among the expert networks whose consultants are being examined, the people say, is Primary Global Research LLC, a Mountain View, Calif., firm that connects experts with investors seeking information in the technology, health-care and other industries. "I have no comment on that," said Phani Kumar Saripella, Primary Global's chief operating officer. Primary's chief executive and chief operating officers previously worked at Intel Corp.

Republicans Deny Unemployment Benefits

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For all of you about to be denied unemployment and can't find a job, it's time to write your Congressional representatives.

The House of Representatives on Thursday voted down a measure that would have reauthorized extended unemployment insurance for another three months, leaving no clear path forward to prevent the benefits from lapsing as scheduled on Nov. 30.

Without a reauthorization, the Labor Department estimates that two million long-term unemployed will prematurely stop receiving benefits before the end of the year.

"I think it's a sad moment," said Rep. Alan Grayson (D-Fla.) after the vote. "It appalls me that the Republicans keep pitching and pitching and pitching the tax cuts for the rich and won't join in a bill to help people keep their homes and not have to live in their cars."

The bill was brought to the floor under a "suspension of the rules," meaning it required approval from two-thirds of the House. It failed 258 to 154, with mostly Democratic support. Twenty-one Republicans voted in favor and 11 Democrats voted nay.

For all those 99ers going to now be homeless (odds on), check out 2 million people about to be denied unemployment benefits.

Remember this only covers (if they were extended) 48% of the workforce. Most can't even qualify to obtain unemployment benefits due to being self-employed, temporary and so on.

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