Reading THE MATCH KING has been fun because, while it takes place in the 1920's, there are so many pages of the story that remind me of my early days in the investment business. I strongly recommend this book for anyone who would like to understand a little piece of the background of what we refer to as Wall Street.
Back in the 1920s, foreign governments gave monopolies to companies in exchange for a loan and a favorable interest rate. The Match King, Ivar Krueger, took advantage of the economic situation in Europe to arrange loans for foreign governments in exchange for a match monopoly in a country in need of cash. The United States had anti-trust laws that prevented legal monopolies from happening. Well, at least they were not called a monopoly. Take health care for example. Not permitting people to shop for their health care insurance outside the state in which they live gives the health care insurance companies a type of monopoly. Now right wing idiots can't figure out that being exempted from anti-trust laws by an act of Congress is the same as giving the insurance companies a legal monopoly. The logic of that seems to escape them. (That is why I say not everyone can have a liberal mind, some people have to work hard to reach that level of intelligence.)
The fight in Congress today over health care has several parts. The public option is the best club to use on the health care insurance companies, but if Congress does not have the balls to stand up for working class Americans, and pass a public option, perhaps they will remove the exemption to anti-trust laws and open up the competition. There are several other pieces like pre-existing conditions and turning down procedures and giving the person working for the insurance company that turns down a procedure a bonus. In my system of justice, anyone getting paid a bonus to turn down a medical procedure would be shot along with the CEO of the company that put in place such a policy. Now that's insurance reform!!!
Stay tuned.
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5 comments:
WOW! No more bonuses for chating people? Now that would be a novelty, Moneythoughts.
You do have a way of getting right to the punch line. Refreshing.
Thanks again.
Summer
May I correct a typo? It was supposed to be: No more bonuses for cheating people? (not "chating people")
Sorry 'bout that!
Summer
I realize that the insurance companies are in business to make money as well they should, however, they are able to write the rules too much in their favor.
I also realize that if the government is allowed to dictate how they are ran or what rules should be allowed to much then we would loose the meaning of a free capitalistic country.
Only because these insurance companies and their managements have gotten so greedy does the government need to step in.
Not unlike Wall Street, some controls are needed. First, shoot the bastards where it hurts but don't kill them. Next, let them try using their insurance in the hospital but make sure they are refused coverage because it is a gun shot wound and these types of wounds aren't covered in their policy. Now, and now only will they know the meaning of "holy crap" I'm going to bleed to death and nobody cares.
Yep, shoot 'em.
Butch, the insurance companies are exempt from anti-trust laws like Major League Baseball. When a health insurance company has 98% of the business in a state, that for all practical purposes is a monopoly. When you have monopolies, the monopoly can set and raise prices and there is no one or thing to stop them. That isn't capitalism either.
You'll love this one in the Washington Post this morning. Short and sweet, cuts to the bone about the two subjects you talk about, Wall Street and it's regulations and the insurance industry.
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/20/AR2009102003073.html
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