Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Thursday, July 18, 2013

TAPERING.....RIGHT!

I have been very busy tending to so many things I have not had much time to post. I plan on doing a chart bonanza in the next couple of days since we have just finished a very good quarter with some drama thanks to Uncle Ben Bernanke and his pals at the Fed. To think they could even hint at tapering! What a joke.

Ben's tapering threat certainly didn't get received well, but he came back and simply suggested that he was kidding!  I think the tapering talk was really forced on him and will be again as the bond market's rates are rising, and we all know that Ben can only do so much.  In fact, we've discussed often how the Fed actually follows the market, I'm guessing this is some of the same.

Speaking of the Fed, let's go back in time and examine just how things were back in the 1920's leading up to the crash of 1929. It may be instructive and entertaining. I've wanted to comment on all the best of Americana given the court rulings of the Supremes and also the case involving a hooded teenager, but alas, I have no time to comment on things that are simply a distraction from investing and trying to figure out what next weakness in the economy will reveal itself. Enjoy the video and look for more posts in the days to come.


GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments at http://www.goatmug.blogspot.com/

Monday, December 10, 2012

BRINGING HOME THE BACON - FOODSTAMP REPORT

GOVERNMENT SUCCESS!
The SNAP program (Supplemental Nutrition Assistance Program) is enjoying a record amount of success as it recorded a huge  monthly increase.  The Federal Government released September data showing that the foodstamp roles added more than 600,000 participants, the largest monthly gain since December of 2009.

The current count shows that we have more than 47.7 million Americans obtaining food through the program, this is about 15.5% of the US population.  The projected MONTHLY cost of this support is $6.4 Billion.




THE FOODSTAMP CHALLENGE!
As the number of citizens and non-citizens on foodstamps increase the politicians cannot help themselves but wade into the mess and attempt to make the folks on SNAP feel good about themselves.  In fact, politicians like Corey Booker, mayor of Newark, NJ go further and attempt to make the point that the nation should INCREASE foodstamp benefits for recipients.

NEWARK MAYOR SHARES FOODSTAMP CHALLENGE
Corey Booker tweeted his experiences and shared the misery of living on $4 a day which is about the amount that he would receive as a single person that qualifies for benefits in the program.  Unfortunately, Mr. Booker hasn't keyed in on a significant part of the program that is revealed in the name, which is SUPPLEMENTAL ASSISTANCE.  The foodstamp program is not intended to be the food source for 100% of a participant's food and is not envisioned to be a long term provider for a single person or family.

In my opinion, the real reason Mr. Booker took the challenge and has made this a big issue is that he has grand aspiration of higher office like governor or senator.  

BRINGING HOME THE BACON
Politicians understand how this works better than most of us.  See, Mr. Booker sheds light on just how hard it is for his constituents to live on foodstamps, and he is perceived as a guy who fights for the poor.  The federal government increases their monthly allotment and then they vote for him.  Or, sometimes it is the other way around.  They vote for him and then they expect him to "BRING HOME THE BACON".  At least that is how Joann Watson of Detroit believes it should be done.


Fox 2 News Headlines

My guess is that Mr. Booker will get elected to some office and he'll deliver more taxpayer money to more foodstamp participants ensuring that they get something extra.  I personally wish that we'd work to add jobs not an extra portion of hog.

WASTE AND FRAUD
The federal government has a target of 3.8% error or fraud rate for the SNAP program, that means they are hoping to only waste or have stolen $2.5Billion this year!

ATTITUDE
I think one of the largest issues I have with the SNAP program is that our federal government attempts to "sell" this program as if it is good to everyone.  Here are a couple of examples;

  • Advertising to add more recipients - The SNAP program spent millions earlier this year in LA and Texas attempting to add more people to the foodstamp roles.  They purposefully try to reduce the stigma associated with "getting some bacon".

  • Politicians tell us it just isn't enough.  Mr. Booker is a perfect example of this problem.  There would never be enough to satisfy people.  Even if we raised the benefit by 50% we'd be told that the amount isn't enough to buy organic fresh veggies or meat.  

  • Sales -  For some reason the USDA believes that it needs to sell taxpayers on the merits of the program.  Their website tells us that for every $5 dollars spent on the program it generates $9.2 in economic activity!  Yeah!  Frankly, I don't need to be sold on the need to help someone out and get them back to work.  I actually support the idea of the SNAP program and don't need to be sold on the idea that the program is good for the economy.

WE NEED SNAP
Don't get me wrong.  There are people that are in poverty that need "temporary assistance" to get to a self sustaining level.  I feel strongly that programs like SNAP, housing assistance, free Obama phones, and more make life more comfortable than it should be FOR MANY able bodied men and women.  I think the fact that SNAP continues to increase despite all of our government's reports that show how the economic situation is improving.  If our economy is better and the employment rate is lower, how is it possible that the SNAP program continues to expand at an even greater rate? 

GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/

Thursday, October 11, 2012

TRANSITORY INFLATION REVISITED (FOOD)

THE FED'S WAY OF THINKING
I find myself reflecting back on the old days of my early career in Finance when Alan Greenspan shared wisdom and knowledge in a manner that left all of us wondering, "What the heck does that mean?".  Greenspan's watch over the US economy earned him the nickname The Maestro since he was able to save us from the financial cataclysm of the 2000 (remember when the world would end because the year changed from 1999 to 2000?).  Greenspan guided us through recession and even gave us a wonderful housing bubble to comfort us after the tech collapse.

Greenspan's cryptic and smooth delivery left a high bar for all following Federal Reserve Chairmen to follow and it is obvious that Ben Bernanke is not quite as eloquent as his predecessor.  As we reflect back, we now know that Greenspan is actually not The Maestro, but probably should be called The Destroyer as his policies clearly contributed to the real estate collapse of 2006 to 2008.  On his watch he avoided oversight and management of banks and lending institutions that pursued profit without concern for solvency.

THE SAVIOR
Bernanke has done a remarkable job "saving" the existing system by performing heroic measures that are by anyone's assessment, simply extreme.  The new Fed Chairman has done the impossible and so he is credited by many as the savior of the financial world.  This blog has often declared that the extraordinary steps taken by Chairman Bernanke really are going to be the undoing of the world financial system as the actions really have only delayed the inevitable and probably made the collapse even more dramatic and far reaching.

THIS TOO SHALL PASS
I wanted to remind readers of the famous discussion Bernanke had where he defended his policies and stated that if there was actually an inflation in terms of food or gasoline, the impact was "Transitory".  In addition, Bernanke stated confidently that if there was discernible inflation in the system, the Fed would aggressively intervene and address the situation.  

(please see the Bloomberg story from April 2011) -

In an effort to check in on how Mr. Bernanke keeps his promises, lets examine an interesting graph I put together using data from the UN Food and Agriculture Organization.  The arm of the UN tracks world food prices so that we may look and see if in fact prices are going up or down over time.

FOOD FIGHTS
As you can see clearly, in April of 2011, food prices were rocketing much higher and this has to be one of the most significant reasons for the "Arab Spring" last year.  Starving people don't tolerate bad leadership for long, and these food prices caused them to take action.  Bernanke was able to step off the gas and we notice that astonishingly Bernanke was correct, prices moderated almost at the same time he gave his speech.  2012 has been a year of decline of food prices, but since September of 2012 and the announcement of QE 3, we have seen the UN Food Price Index reverse and begin to move higher.




Since I don't want to present data that tells an incomplete story, I've also posted a chart below that gives us a view of the nominal prices of the food index (as shown above), but also presents the inflation adjusted values.  The adjusted values still highlight that the food index is close to 30% higher than 2009 levels.  Let me say that again, food costs are close to 30% more than  3 years ago.


Nominal vs Real




The FAO data also has a breakout of the component commodity food prices and I have posted them here too.




Sugar continues its fall, but meat, dairy, and cereals all have move higher since their lows in January.

TWO CHOICES - BEN PICKS INFLATION!
As I wrap this up, the point I am trying to make is that Bernanke told us that inflation was moderating and seemed "transitory".  Almost in tandem with his statements, inflation worldwide reversed course and prices came off significantly.  In 2012, we have seen a reversal to this trend and we now see that food inflation is now heading higher.  It will be interesting to see additional data for October as it will include more of the results of the QE 3 announcement.

At this point the consumer worldwide is paying more for food and we all need to question Bernanke as to how long "transitory" really means and how he plans to aggressively intervene to stop inflation while he is aggressively holding rates at ZIRP through mid 2015.  My guess is that he will gladly let inflation stay awhile longer (forever) rather than stop his zero interest rate policy.  Our government and the Federal Reserve would gladly export food inflation and instability throughout the world to keep the financial system alive for a little while longer.


GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/

Tuesday, July 17, 2012

A LITTLE FRAUD IS OK --- MARKET SYSTEM IS A JOKE


A LITTLE FRAUD NEVER HURT ANYONE?
I am on vacation this week, but couldn't resist making a quick post after seeing this clip today.
Without more comment other than a brief introduction we have Rick Santelli speaking on CNBC about the Federal Reserve Chairman's off-hand dismissal of the Libor-gate under reporting incidents.





Key take aways from this whole mess are;

1)  As long as the fraud you are doing is to save "the banks" it will be seen as ok.
2)  As long as you are manipulating markets and it is only a few bps, then it is ok.
3)  As long as the Fed knows about the fraud you are doing, it is ok.
4)  As long as the markets are close or open, it is ok to commit fraud.

WE ARE NO DIFFERENT - BANANA REPUBLIC HERE WE COME
I don't know why I am so upset by this.  In the midst of the crisis there was talk about this happening and it was pretty obvious that it was.  I think that I am so disturbed because it really does reveal the level of absolute corruption in our "free" market where if you are connected and big enough, anything goes with the blessing from the government and leadership. We have become a centralized communist state where those in power skim off the top and receive blessings and financial rewards.  The people are simply the mechanism to create the wealth that is stolen.  Are we Russia or China or perhaps Mexico?  Perhaps, it is clear though we are not above fraud, corruption, and manipulation.

GOATMUG
Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/

Wednesday, February 16, 2011

PART II - KYLE BASS - THE EUROPEAN EXPERIMENT

Part II of the interview includes Kyle's perspective on the European economies and why the entire experiment is going to fall apart.  There are some funny stories about Greece and the fraud there.







Enjoy

GOATMUG

Tuesday, November 30, 2010

BANKS LIE AND DEFAME THEIR EMPLOYEES TO KEEP THE FRAUD PLATES SPINNING

Check out this article from Bloomberg this morning.  B of A continues to deny (like all banks) that there was a problem with the way they handled the securitization process in rolling these into MBS.  Based on the testimony of a team lead in the mortgage litigation department at B of A, Linda DeMartini, we see that it was routine for B of A to hold on to the promissory notes and keep them in their name (possession) despite the fact they were required to sign the documents over and physically transfer the paperwork to the trustee (MERS).

Is it any wonder that MERS cannot produce the actual mortgages for all of these foreclosures?  Is it any wonder that some properties have been foreclosed upon by several banks?  Is it any wonder that NO documents can be found?

Of course B of A fired back that this lady was wrong and she didn't know what she was talking about.  All I need to know is if in fact she is wrong, where is the deed?  They haven't been able to produce one!

Enjoy - BofA Mortgage Morass Deepens on Promissory Notes Issues


TRADING UPDATE
As much as I think we are winding down this dump we've had since we highlighted issues in Euribor and CDS widening, the contagion that is bad fiscal policy in Europe has some pretty strong tentacles.  We are now hearing more about Portugal, Belguim, and others being targets of concern.  It won't be long till it is the USA.  Emerging markets and commodities have been whacked as we anticipated and for nimble traders heeding warnings you've done well.  For those that have toughed out the drawn down, you are ok as these currencies fall we'll see hard assets and the emerging markets rebound.  Be aware that emerging currencies will be the targets of their governments who will try to stem the flood of assets coming their way trying to get away from the disaster that is the Euro and the USD.  Rate hikes, capital flows taxes, and more will come so don't be surprised.  Personally I bought a large slug of silver in this weakness over the last week.  I anticipate that over the next year that this will prove to be one of my best trades.  It is a very long term and ill-liquid position so I won't provide much of an update other than once or twice next year.


GOATMUG


 

Thursday, October 21, 2010

THIS IS A CANCER - CHRIS WHALEN ON THE MBS FRAUD

Chris Whalen is interviewed on Bloomberg about the MBS issue and the ramifications for investors.  Chris details how he thinks these losses will ultimately be put into an RTC type vehicle.

What is catching about this 7 minute interview is that he suggests that this will be a non-event driven event, meaning that there won't be some big implosion, but rather a cancerous attack on bank earnings.

I'd love to have more details on what he mentions here, but he also suggests that JPM did a very good job of doing their paperwork.  He doesn't say more than that, but as you know, I love long/short plays.  I don't think I'd actually pull the trigger and go long JPM and short someone like BAC, but it is an interesting thought.

Ultimately he ends with the idea that investors in MBS might just have no recourse whatsoever if they cannot amass at least 25% of the issue.  If an investor can obtain 25% then they can compel the trustee to sue the creator of the security, otherwise, no recourse may be the result.  YUCK!  Can you imagine buying a complete fraud only to find out that you have no ability to do anything about it?

Enjoy!





Be Careful! (Hat tip to Karl D)  If you want to drink from the fire hydrant on this continuing issue, please check out his site daily. - http://www.market-ticker.org/

GOATMUG

Wednesday, October 20, 2010

BANKS - WHO WANTS EM?

I've taken a bit of flak over the last several days from people suggesting that I'm over-focused on banks.  Yes, I look at them, and yes they are important, but I need us to be on the same page regarding the concerns I have and where I think we are in general.

ROBOGATE / FORECLOSURE GATE / FRAUD
Ok, I've written about how dirty this whole process has been where banks have tried to forge documents and attempt to create titles where they have been lost.  These are juicy details and this is exactly the kind of item that makes a good story for a blog, but this is not really why this issue is such a big one.  The more important issue is that when the big banks were wrapping these mortgages into huge pools and securitizing them (slicing and dicing them into parts so different pension plans and investors could buy based on credit rating), they represented to them that they actually had recorded all of the documents for clear title and guaranteed or warranted that the MBS buyers were getting a solid legal claim to mortgage backed assets. 

What the sub-prime collapse and the subsequent real estate implosion has shown us is that the banks and their clearing system (MERS) did not actually do what they promised they would do by filing all the paperwork and ensuring that the MERS trust actually owned the notes and had a claim as a lien holder on the real estate asset.  By NOT doing what they promised in the prospectus or security documents, they committed fraud.  In addition, they firms are claiming that the securitizers that packaged up the deals didn't actually put the quality of loans in the deals that they promised.  This is the issue, and this is the big problem.  What this means is that the buyers of the MBS now potentially have a claim to get 100% of their money back on the investment because the trustee or the servicer, or the originator didn't actually create the MBS in the manner that they stated.  Remember, the buyers of these securities are not Joe 6 Pack.  The buyers of these MBS securities were insurance companies, mutual fund companies, hedge funds, governments, and private equity funds.  The buyers of these deals were big money players that then often leveraged these bets 10:1 or 30:1.  The total amount of mortgages wrapped up in these deals is numbering in the trillions!  So, are any of the buyers of these asking the originators to take them back?  Yes! 

http://www.bloomberg.com/news/2010-10-19/pimco-new-york-fed-said-to-seek-bank-of-america-repurchase-of-mortgages.html

I hope this provides some clarity regarding the view of the banks.  In addition, it is important to look at the chart for a technical view.  It is so interesting to me as I look at this 200 day view of XLF (big banks) that it simply cannot push through $15.00.  Look at the 5 or 6 attempts since June of 2010 to go higher.  Even in the last week we could just touch $15.00 only to be rejected.

As I am typing this, the market is ripping higher after yesterdays 165 point Dow thrashing.  This is the environment we live in now.  I truly believe that the market will not be allowed to decline for more than a day or two until after the elections.  If there were a string of 5 or 6 down days that would certainly ensure a resounding Democratic defeat.  The ability of the market to stay positive gives the incumbents a chance to retain a glimmer of hope to retain power.  Please note, that if Republicans do win, I actually believe banks will rally as the street will believe it will be business as usual and the Republicans will assist the banks in getting through this mess.  Hopefully that belief is misguided as I'm sick of the corruption and bailouts at taxpayer expense.


Be careful!

GOATMUG



Wednesday, October 13, 2010

"MR. CHO KNOWS" - HOUSING FRAUD RAMIFICATIONS

More housing discussion.  Mr. Cho is the one who really gets it in this discussion.  It was intentional and outright fraud from the beginning and it was all going good until you had to foreclose on people.




This will be interesting even if it gets papered over in the end.

Monday, October 11, 2010

ROBOGATE THROUGH THE YOUTUBE LENS

I have eluded to Robogate in my last couple of posts but haven't written much more.  If you haven't heard, Robogate is a scandal where bank foreclosure processors have been processing foreclosure documents on properties that they have not validated the ownership of the property and have not confirmed that they even have all the documents in legal order to proceed to court.  What is worse is that in some jurisdictions, banks must actually present the real documents in court to prove that they have legal rights to move forward. 

The term ROBO is a reference to the fact that in many states, processors must have the actual loan documents and paperwork in hand to foreclose, yet the processors were signing, notarizing, and verifying hundreds and thousands of properties a day.  I'm sure certifying all the documents is a pains-taking process and plowing through the hundreds if not thousands of document packets a day is impossible.  The fraud was then compounded as bank officers would then sign a affidavit stating that they had legal ownership to the property and were taking to steps to obtain the properties.

Here is the problem.  In many cases, the banks that were foreclosing did not have good loan documents, didn't actually have legal title to the property, or actually had no claim at all on the home!  In other cases three or four banks were claiming they owned the property.  Finally, many properties that were rolled up into MBS or mortgage backed securities didn't have any paperwork at all.  There have been instances of banks breaking into homes and changing the locks only to determine that it was the wrong address, that the home owners actually owned their home outright!

If you thought that the housing market was going to be fixed soon and we were clearing this inventory out (since 67% of all sales in the last several months have been foreclosure sales to investors) you would be absolutely wrong!  In response to the concern for the actual legal right to foreclose on any property many state's Attorney Generals have asked for a moratorium on all foreclosures.  Ally, B of A, and others have voluntarily complied.  Title insurers are not going to underwrite title insurance on any foreclosure - and would you blame them?  So, this means that there will only be cash buying of any previously foreclosed on property.  If an investor buys the property, he is crazy not to have title insurance!  The trust of all of this is that the housing market for all of this inventory is going to grind to a halt.

What is worse now is that if you own a home in an area with lots of foreclosures, you will see a big drop in the values of those surrounding properties, which means further declines in your own values.  Prices last month were already beginning to fall, now this should accelerate this problem.


Last, one of my favorite things about Youtube is the funny interpretation that folks put on these war videos.  Hitler couldn't be more frustrated if he was in charge of Robogate!  Whoever wrote this one has inserted poor language.  Please don't watch if you are offended by strong language (text).




This is a total mess and this issue will not go away.  This will simply foul up so much with the banks, real estate industry, and Main Street.  Look for a new RTC (which should have been done a year ago) to be created to deal with this all out fraud.

GOATMUG

Thursday, January 7, 2010

Misdirection and Slight of Hand - Health Care Reform

Just a quick post to provide you information on the health care reform trends.Click below to read what United Health Care has summarized as what they believe will be the final version of the coming changes to health care over the next few years.

http://www.ezrespond.com/Healthflash.pdf

Specifically, in the next 6 months, insurers will need to adjust their treatment of the following;

1) Get rid of any waiting periods of greater than 90 days to begin insurance that is approved.
2) Stop rejecting children under 19 for pre-existing conditions.
3) Stop canceling insurance policies except in the case of fraud (this is overdone - in 7 years I have never seen a policy dropped for someone making valid claims.)
4) Provide preventative care (wellness visits) without cost sharing. - Many insurers only pay $300 or $400 a year, but require a client to pay 25% of the cost. For example they pay 75% of wellness visits up to $300 out of the insurance company's pocket.

All of these changes are good and right, however they will raise rates, so hold on to your hat!

UHC also highlights other changes they expect in 2011 and 2014 so read away.Here is my take on the entire deal.

STRUCTURE
You must know how the structure is set up to understand the fraud that is being put in place.
A) Taxes begin immediately.
B) Cuts in Medicare coverage begin (After mid-term elections)
C) In six months, the changes above are effective
D) 2014 - The big reform is schedule to hit - Individuals are required to have coverage or pay a penalty of the greater of $750 or .5% of their income if they don't purchase insurance.

IMPACT

HIGHER RATES
As I mentioned, the impact of these changes will be immediate. Insurers now are required to take children that have pre-existing conditions in the near term and these "sick" kids will be an immediate drain on profitability and an increase in cost. Is there any doubt that kids that are very sick will hurry to buy insurance? Is there any doubt that insurers will adjust rates on all new policies sold and also on all existing policies when they have a chance?

TIME LINE
Ok, so here is the real deal. The administration's efforts here are to begin paying for this plan with increased taxes today. In addition they begin cutting Medicare benefits, require insurance companies to make changes immediately add sick folks to the insured roles (read as decrease profits and increase costs - or simply put hurt their businesses significantly). Finally in 2014 we have everyone come on the plan. Kind of strange timing isn't it?

WHAT WILL REALLY HAPPEN
A) Oh yes, please look at the 2014 stipulations as well. Employers will ultimately drop their coverage and stop offering it if they employ more than 50 employees. Think about it, they will cut costs significantly in the form of premiums (they will have to pay a $750 fee per employee fee when not offering a plan) and will be able to tell their employees that they have health care available through the government exchange plan. -- You don't think they'll do it? Right now, most employers pay 1/2 of the health plan costs per employee, just assume that that is $200 a month of a total of $400 a month. The break-even is just at 4 months. Cash strapped employers will absolutely push their employees off into the new plan.

B) Over the course of the next 3 years, people will sue the federal government and it WILL be declared unconstitutional to require a person to enter into a contract with a third party to obtain insurance.B) In that 3 year period, private insurers will have had their business margins slashed and profitability will have been destroyed. With the high court ruling that the health reform act is unconstitutional, we will see a final destruction of these firms as the trend to buy insurance will be broken and good healthy clients will drop policies, while sick folks will retain them.

C) As a result of the court action, the federal government will step in with the only solution - a national health plan that is a one payer system (GOVERNMENT HEALTH PLAN). This will be the only fix as the collapse of private insurance plans will be complete.

It sounds ominous and sounds like a conspiracy doesn't it? The answer is clearly "YES" it does and guess what, it is all planned. Remember, the administration says they don't care what gets passed, just as long as it is passed. This is the gateway for the end goal of national health care. The first step is only a first step.

Do I think the system needs an overhaul? Yes, of course. I speak with people every single day that are declined by insurers.

Do I think this is the answer? No way.

Long term, you as a patient and consumer will pay more, have less choice, and ultimately wait much longer for medical services. Government is inefficient and is never the answer. In addition, all of the assumptions by the CBO and the administration don't account for the massive exodus from employer plans to the new government plan. This will be the major reason for massive cost overruns.

We have been told that the model for these plans are the VA system and Medicare.Remember two or three years ago when President Bush was blasted for the conditions and treatment of soldiers in the VA system during the Iraq conflict? Remember how the Democrats told us how terrible things were and how bad the hospitals were maintained? Ask a veteran that goes to the VA how quickly treatment is provided? This is the model?

Finally, if you think that government can run things well why is Medicare absolutely broke? Why would we model anything after this plan. The system is filled with fraud and costs are out of control. The government almost creates an environment where over billing is the norm because they reimburse providers at less than 50%. If you owned a practice wouldn't you do an extra procedure, lab, or other test simply to cover the cost of the haircut you'd receive?

Bookmark this post, I'm certain of only a few things in life, but I am sure this is a disaster waiting to happen. In the meantime, I'll rejoice as I'll sell a lot more policies and insure many of the kids that I've had declined previously. I better save my money though because the future is certainly dim over the long term unless the government allows for the sale of supplemental coverage to sit on top of the government run plan we are sure to have.

Goatmug