Health Insurance Ignorance

Posted in Uncategorized on June 6, 2009 by kittendiatribes

IGNORANCE IS BLISS,
U.S. Trails Canada, Britain in Healthcare Ratings by Coleen McMurray “United States, the only country of the three that does not have a publicly funded healthcare system, less than a third of residents (27%) are satisfied with the availability of affordable healthcare.” http://www.gallup.com/poll/11899/US-Trails-Canada-Britain-Healthcare-Ratings.aspx

Many claim that the United States has the greatest health care system in the world. That claim is hard to support, when America spends over 16% of GNP on health care, while more than 46 million Americans have no health insurance and millions are under-insured.

Japan, Australia, Canada , and rich European nations spend between 8 to 11% of GNP in health care and enjoy superior service and universal coverage. Americans have a lower life expectancy rate, higher rates of heart disease and cancer, and an infant mortality rate that is twice as high as other rich industrialized nations. Even Cuba has a lower infant mortality rate than the United States according to CIA Fact Book . America spends much more and gets much less than Western nations . … It is expected that the United States health care spending would reach nearly 20% of GNP within next 10 years, which is unsustainable. http://www.eyeuniversal.com/eyeuniversal/HealthcareSolutions/summary.html

God, Assumptions and the Financial Crisis

Posted in Uncategorized with tags on October 3, 2008 by kittendiatribes

God, Assumptions, and The Financial Crisis

 

Sometimes I think of a definition of God as irony.  When mortal human beings have the unmitigated temerity to assume, sometimes God steps in with irony.  And the assumptions were and are many.

 

The current assumption of the financial pundits begging the public to support this bailout, is that the public cares.  One interesting call came on the local news affiliate from someone who makes minimum wage. He has no $250,000, or $100,000 to protect.  He doesn’t have any 401K or IRA investments.  He is living from paycheck to paycheck.  His question, why should I care?

 

The assumptions that were made in the boardrooms, was that risk was someone else’s problem.   I spent years in two different boardrooms of financial firms.  One in the mid 1990s, where we were urged by the CEO to, “get that man elected”. That man was a Republican candidate running for governor, who was favorable to our interests.  The second boardroom was for a mortgage banker, where I was heckled by the COO as Kerry gave his speech.  I don’t think it was my silence that was a dead give a way regarding my political leanings, but my adversity to risk. 

 

What were the risks? The mortgage bank I worked for was one of the first companies in the country to use automated underwriting. Before computers and computerized credit scores, human beings underwrote files.  Over about a ten year span we progressed from mailing to faxing, copying to scanning, and ultimately trusting the wisdom of a computer. 

 

The first loan I used automated underwriting on was for a man making $8.50 an hour, or $1,462 a month before taxes, health insurance,utilities, gas, etc..  I was asked by the Realtor and his mother, a branch manager at a credit union, to keep running his loan through Freddie Mac’s automated system for the highest loan amount.  For the $85,000 home, his payment with taxes and insurance came to $650 a month, or nearly 45% debt to income ratio before taxes, etc..  Using a conservative optimistic estimate, lets say 15% of his check went to taxes and his health insurance was covered, that leaves $1,242.70.  After paying the mortgage payment of $650,that leaves $592.70 a month.  Lets say he spends $200 a month on food and $200 a month on transportation to work, that leaves $192.70 for electric, heat, water, and trash service.  Some would say he shouldn’t have bought a house, but can you see renting most places for less than $650 a month?  Can you imagine raising a family?  Can you understand why common people may not care about bailing out people who have more than they do?

 

Later the automated systems of Freddie and Fannie began taking higher debt to incomes, particularly if the person made a large income.  The systems also asked for less documentation, “streamlining” the process. The assumption was that good credit scores and the residual income relative to the mortgage payment and cash reserves was sufficient to mitigate the risks.  But the production would slow as interest rates went ever so slightly up.  So how does one maintain the production levels and the executive bonuses associated with bringing in more production?  Push the envelope. 

 

Eventually there would be those with debt to income ratios that went above 50%, 60%.  So to get more production the Stated Income Verified Asset, Stated Income Stated Asset,and the No Income No Asset became into play and not only for “sub-prime”companies, but for the GSEs as well. One assumption was that the borrower had a business, which had tax write offs that reflected poorly on their “real” income.  The other assumption was that because of the credit score, the borrower could be trusted to figure out how to make the payment. 

 

But production is down again and we’ve cooked the books,changing accounting guidelines to make things look better, (something the Republicans are suggesting now). We need our bonuses, so what to do?  Well lets give the borrower who we don’t know if they have an income the “Option” to make a small payment that is essentially borrowing against their home. These Option Arms were particularly popular with Jumbo loans, those loans that went over Fannie, Freddie, and Federal Housing Administration (FHA)loan limits.  The assumption was that housing prices would keep going up.

 

My incorrect assumption was that my bosses wanted to hear about risk.  There were many risks, but the last risk was doing business with Bear Stearns and Lehman.  They pushed the envelope just a little further on the No Income No Asset.  Now the credit scores were lower, the loan to values were higher, and the types of properties included investment homes. The joke was that we might as well take homeless people off the streets and give them a loan.  But despite the jokes and reservations, they wanted the production volume. 

 

Now we are in the final assumption.  The assumption that corporations will operate in the best interest of the public and save us money over government run institutions like FHA.  The assumption that the pharmaceutical industrial complex, the healthcare industrial complex, the military industrial complex, the energy industrial complex will look out for our best interests versus their wallets.  Whether it was the General Accounting Office having to drop the suit against energy influence and Cheney after the Republicans gained control of both houses of Congress, or a Bush creating a loophole that put many at risk of loosing prescription drug coverage for the windfall profits to pharmaceutical companies, or how $12 billion in one hundred dollar bills was shipped to contractors like Halliburton, Blackwater, and KBR,who like to build showers that electrocute our troops, or the Savings and Loan crisis, or today, it is all corporate welfare. Corporate Welfare supported by lobby blood money and communist China.  The Golden Calf is worshiped at the expense of the American people.

 

The irony is that the religious have been led down the road to perdition.  And now there is confusion with all the lies they have been told, the assumption that government is evil and capitalism, privatization is the savior.  To reconcile the reality that communist China’s Yu Yongding, can tell us, “If the U.S. government allows Fannie and Freddie to fail and international investors are not compensated adequately,….`If it is not the end of the world, it is the end of the current international financial system.”  Communists who have persecuted religions are now telling us what to do.  And the religious have sold the soul of the United States of America for promises of what?  A reduction in abortions and gay marriage? No.  The opportunity to worship the Golden Calf.  I love irony. 

Lobby Blood Money Buys Move On

Posted in Uncategorized on August 19, 2008 by kittendiatribes

http://www.huffingtonpost.com/eli-pariser/what-do-moveon-members-th_b_118930.html

So Move On is taking the pragmatic approach on health care versus the fiscally responsible one.  That’s wonderful.  Evidently, that’s how to win the presidency.  Win what?  A country owned by foreign countries.  Even states are selling out to foreign countires, just look at Gov Mitch Daniels selling the toll road. 

Winning at all cost. That’s how we ended up with GW Bush(ironic his grandfather Prescott is connected to a plan to fascist overthrow of America- http://en.wikipedia.org/wiki/Prescott_Bush)

“60 Minutes”–US Government Immorality Will Lead to Bankruptcy-David Walker
(min 5 gets interesting, how GW gave $$$ to Health care lobby blood money)
http://www.youtube.com/watch?v=OS2fI2p9iVs

David Walker, Former Comptroller GAO
(By the By, interesting how he resigned when he couldn’t continue investigating Chaney and energy industry lobby blood money-GAO drops Cheney energy suit, unable to force vice president to give up administration data-
http://www.post-gazette.com/nation/20030208cheneynat7p7.asp

Now I know Lobby Blood Money truly rules, they’ve bought out Move On, Congrats!!!!

Communism = Privatization Capitalism

Posted in Uncategorized on July 16, 2008 by kittendiatribes

First let me begin by saying that I’ve made Corp. America $millions.

What both Privatization Capitalism and Communism both failed to realize is that there is a role for government to protect society. (Not the kind of protection from gay marriage feared by the Christian right, used a puppets for blood money.) Both communism and privatization/capitalism believe in freedom, whether it be freeing the individual from class distinctions or creating free market conditions (Milton Friedman, market economies are inherently stable if left to themselves, laissez faire. )

What both communism and privatization capitalism assumes humans are altruistic, that they will not lie to each other in “free market” transactions or Marx believing putting humans in such conditions that they would not wish to exploit others.. In a simpler form its kinda like Reagan’s“Tickle Down Economics”.

Also an assumption of privatization is that by examining a government’s performance versus the private sector cost savings will be generated. Per the Smith Group Consulting’s website, “This allows the governmental unit to develop a competitive strategy and return savings to its citizens in the form of better services and/or lower taxes”. If this were truly the case, we would have single payer health care and wouldn’t be spending billions, trillions on war in Iraq.

So bottom line, Bush, Chaney, Rove and McCain are no better than Communists.

Corporate Welfare

Posted in Uncategorized on July 16, 2008 by kittendiatribes

Lobby Blood Money Rules!

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