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  • Your Political Zen Koan of the Day

    Okay, I'm preaching to the choir here, but I'm hoping if I seed this comment on several blogs, it might start a "meme", and non-bloggers might actually start asking each other these questions.

    So riddle me this.

    If the Obama/Geithner financial bailout plan is such great shakes…

    (where bankers bid "sky's-the-limit" on "toxic" securities, while the US government underwrites 85 cents of taxpayer money on each dollar bid, in order to entice the bankers to bid higher on these discredited securities and thus get the credit market “flowing” again) …

    …then why shouldn't we apply that same principle to the Health Care crisis?

    Why shouldn’t the government simply pay 85 cents on the dollar whenever a health insurance company buys up a "claim risk" -- (a person who likely has health problems and therefore isn't profitable; these people are typically denied insurance).
    We’ll entice the insurers just like we do the bankers!

    That outta get the "frozen" health care market flowing again. And once people have insurance, they’ll receive wonderful preventive care and stay healthy forever and all our health care problems will be over with.

    The official bipartisan storyline says that, apart from rejecting unhealthy unprofitable people, millions of poor Americans are priced out of having their own health insurance, because these same poor people without insurance drive up emergency medical costs, and thus contribute to the shocking health care inflation. Which means they themselves price themselves out of the market -- due to not joining the System like good citizens. (It's not because the health industry, for example, abuses patent powers, or spends billions lobbying Congressmen, or anything like that.)

    So if the government just pays 85% of the cost of acquiring new clients -- like we're about to do for the bankers -- then health insurers can remove the "risk premium" when they offer insurance to poor people. Insurance will immediately become affordable for everyone. Prices will plummet, everyone will participate, and everything will be hunky-dory. We'll insure the sick and insure the poor.

    And we'll only need to print up another elevendy-quintillion worthless dollars in order to do it. If the Geithner Banking plan can (in some bizarre parallel universe) be called "Market-Based", as opposed to Nationalization, Socialization, or just a plain-ole Handout... then my own Health Care Solution also meets those requirements.

    [/sarcasm]

    Howcome the one is a “serious” proposal but the other is not?

    Who decides the priorities, that the Banking Crisis must be dealt with immediately by piling up stacks of money from here to Saturn, whereas the Health Care Crisis has been simmering for upwards of 20 years?

  • #2
    Re: Your Political Zen Koan of the Day

    Right on. I am sorely pissed about this issue as well. How pissed? Looking to kick some lobbyist in the nuts.

    Comment


    • #3
      Re: Your Political Zen Koan of the Day

      Originally posted by necron99 View Post
      Who decides the priorities, that the Banking Crisis must be dealt with immediately by piling up stacks of money from here to Saturn, whereas the Health Care Crisis has been simmering for upwards of 20 years?
      Here's what Geithner and Bernanke and crowd won't tell you: without massive government intervention, the banks are dead, along with all of the money that they have on deposit. It's all gone. As a result of the mortgage crisis, bank capital would be well below zero if their assets were marked to market. In a true free market, the banks would just dry up and blow away, and take their depositors with them.

      So, I guess they feel that trying to salvage people's life savings and the money used by employers to pay for things like salaries and food, not to mention the money used to pay doctors, hospitals, etc, etc, is a little more important than health care at the moment. Go figure.

      Comment


      • #4
        Re: Your Political Zen Koan of the Day

        Ahhhhhh, Sharky, Sharky, Sharky... :rolleyes: :rolleyes: :rolleyes:

        If I have to explain the joke, it of course ceases to be funny.

        But I really don't want to be misinterpreted on this point: The reason this post is titled ZEN KOAN, is because I do not seriously believe that the government blowing another "elevendy-quintillion worthless dollars", as I put it, out of its @$$ right now -- clue that I was being sarcastic??? -- is the best prescription for the country. My question was, WHY do we do this for derivative speculators... who will surely receive 95% of the money, not depositors, if I understand the concept of "Leverage" correctly... but not for our citizens' health, when we've had the opportunity to do so for around 20 years but never acted. We've had plenty of opportunities to protect and promote savings for the last 20 years, too, but up until last October the official policy was "everyone needs to take on more debt or else the Terrorists win"!

        Wikipedia describes a Zen Koan as "containing aspects that are inaccessible to rational understanding, yet may be accessible to intuition." Sure, the Obama/Geithner plan makes a lot of rational sense on paper. Does that mean it's gonna work?

        You flunk your Zen training this week. Please go home and meditate on the following:
        • 'Health Care Insurance' is not equal to 'Health', in much the same way that 'Easy Credit' is not equal to 'Better Lifestyle'
        • If our only hope to keep a critical system running -- the bank system, or the health care system -- is to bribe insurers to take on bad risks, then what happens when the bribes stop flowing?


        Please, please, please, people -- the "answer" to my analogy is "None Of The Above". Both systems, banking and health care, need fundamental, structural overhaul. But that's not what they're gonna get anytime soon. The Obama/Geithner team seems to be hoping that the next Crash, when the bribes stop and the banks finally write down these "assets", won't be as severe as this current one -- because people will be more aware of the risks. The people who bought the "toxic assets" will just say "Oh well, I lost some money, I'll take the hit, everyone else just keep on playing without me." The underwriters won't write so many risky overvalued loans and securities.
        Everyone will have "learned their lesson."

        Yeah, sure, because that always happens after you bribe people.
        Hope that kool-aid tasted good when you drank it, Barry-Oh!



        Originally posted by Sharky View Post
        Here's what Geithner and Bernanke and crowd won't tell you: without massive government intervention, the banks are dead, along with all of the money that they have on deposit. It's all gone. As a result of the mortgage crisis, bank capital would be well below zero if their assets were marked to market. In a true free market, the banks would just dry up and blow away, and take their depositors with them.

        So, I guess they feel that trying to salvage people's life savings and the money used by employers to pay for things like salaries and food, not to mention the money used to pay doctors, hospitals, etc, etc, is a little more important than health care at the moment. Go figure.
        Last edited by necron99; April 01, 2009, 10:22 AM. Reason: clarify

        Comment


        • #5
          Re: Your Political Zen Koan of the Day

          Originally posted by necron99 View Post
          If I have to explain the joke, it of course ceases to be funny.
          I got what you were saying.

          Sorry you didn't get what I was saying...

          Comment


          • #6
            Re: Your Political Zen Koan of the Day

            Originally posted by Sharky View Post
            I got what you were saying.
            Sorry you didn't get what I was saying...
            Please feel free to write me a Koan!
            This is the rant-n-rave section after all.

            You're sayin' that the "Productive Economy" 's only pragmatic chance for survival at this point is to resuscitate the FIRE Economy? I'm sayin' this plan makes all of everybody's savings, salaries, food, doctors, and hospitals into mere footnotes of the FIRE economy (which has decomposed to roughly "FI" by now). And the dog doesn't write his domestic policy with the fleas in mind. If the ordinary savers and businesses mattered to the policy-makers, then why sit the FDIC down at the roulette table instead of building a "lock-box" around it?

            You're sayin' that propping up the banks and investors in this particular manner is going to avert financial chaos? I'm sayin' that a limited, specific type of financial chaos has been the goal of the banks and big investor/financiers for many years now. You're not going to avoid chaos that way, just watch.

            What you're saying about the banks is almost certainly true. But take a look at the way the Geithner plan is being sold to us, at least in the U.S. (just now noticed your tag of New Zealand). These financial bailouts are being sold to us as "win/win" situations: consumers will get to spend profligately again, and the banks will remain profitable without taking financial hits or defaulting on deals. This is how they're being advertised. No higher taxes, no sacrifice. Once the credit market is back on track, we'll just grow our way out of this minor setback. Win/Win and away we go to a bright shining future. No pain. We'll be back on track to endless growth in no time. Nobody loses.

            Y'ever hear the saying in card games, "If you don't know who the patsy is, then you're the patsy" ? ?

            I still have a job at this point, so I'm headed out the door to work. (Then again, despite my location bar, I don't live in Santa Fe anymore, I am an ex-pat living abroad right now.) I would honestly like to read any further comments if you wish to write them, but there are Draconian internet filters at work, so I won't be able to read them until late tonight. Just so you know that I'm not ignoring you.
            Last edited by necron99; April 01, 2009, 11:09 AM. Reason: supporting hyperlink

            Comment


            • #7
              Re: Your Political Zen Koan of the Day

              Necron99 and Sharky - having a tennis match here.

              Comment


              • #8
                Re: Your Political Zen Koan of the Day

                "You flunk your Zen training this week. Please go home and meditate on the following:"

                http://www.do-not-zzz.com/
                Justice is the cornerstone of the world

                Comment


                • #9
                  Re: Your Political Zen Koan of the Day

                  Originally posted by cobben View Post
                  "You flunk your Zen training this week. Please go home and meditate on the following:"

                  http://www.do-not-zzz.com/

                  Thanks. I just wasted five minutes of my life:mad:

                  Comment


                  • #10
                    Re: Your Political Zen Koan of the Day

                    Originally posted by necron99 View Post
                    Please, please, please, people -- the "answer" to my analogy is "None Of The Above". Both systems, banking and health care, need fundamental, structural overhaul.
                    They might both need an overhaul, but neither is going to get one anytime soon.

                    Look, the system is dead. The government is giving a transfusion to a dead patient. The FIRE economy can't be restarted. Money from the banks is needed for healthcare in the same way that it's needed for food and shelter.

                    Besides, what makes you think that the same people who created the current crisis in healthcare would ever be able to fix it? Sounds like a fantasy to me, nothing more.

                    Comment


                    • #11
                      Re: Your Political Zen Koan of the Day

                      :p :p :p Reading these exchanges of comment here is very entertaining.

                      Originally posted by cjppjc View Post
                      Thanks. I just wasted five minutes of my life:mad:

                      Comment


                      • #12
                        Re: Your Political Zen Koan of the Day

                        Originally posted by Lukester View Post
                        :p :p :p Reading these exchanges of comment here is very entertaining.

                        Hit that stupid link. See you in 5 minutes.

                        Comment


                        • #13
                          Re: Your Political Zen Koan of the Day

                          OK, I'm all "zenned out" now. Relaaaaxed (no dreams of blowing the buzzing fly away with a bazooka shot across my nose). Time for a cold beer before going to the gym, to work the cold beer calories off. It's all a virtuous circle.

                          Originally posted by cjppjc View Post
                          Hit that stupid link. See you in 5 minutes.

                          Comment


                          • #14
                            Re: Your Political Zen Koan of the Day

                            Originally posted by Lukester View Post
                            OK, I'm all "zenned out" now. Relaaaaxed (no dreams of blowing the buzzing fly away with a bazooka shot across my nose). Time for a cold beer before going to the gym, to work the cold beer calories off. It's all a virtuous circle.

                            Yes, but do you feel as stupid as I do?

                            Comment


                            • #15
                              Re: Your Political Zen Koan of the Day

                              Stupid is good. It means you are getting back in touch with your Chi energy - sort of thinking out of your navel area. You need to stop cerebrating so much guy. This thread is very entertaining. Now it's time to go back to the Necron99-Sharky tennis match.

                              Originally posted by cjppjc View Post
                              Yes, but do you feel as stupid as I do?

                              Comment

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