USA Watchdog Interview - Obamacare, Growth And Economy
The Market Ticker - Commentary on The Capital Markets
2017-03-29 07:36 by Karl Denninger
in Interviews , 146 references Ignore this thread
USA Watchdog Interview - Obamacare, Growth And Economy
 

Come and get it!

Greg's blurb:

The latest is called “Obamacare is the Reason for Anemic Growth-Karl Denninger.”  Analyst and entrepreneur Karl Denninger predicted years ago that Obamacare would “kill the economy” and “eventually implode.”  Today, the first quarter GDP came in at just .9%, and Denninger contends Obamacare is part of the reason the economy is so anemic.  Denninger says, “Since the crash in 2008, we’ve had 2% GDP expansion roughly on an average basis, and you are trying to expand the growth of one program in the government by 8.5%, and that’s not going to work.  This is the problem you have.  What Obamacare has done has caused the 2% expansion. . . .  So, what has happened here is we have taken this program and crammed these costs into the economy on a mandated basis, and the result is the productivity expansion has gone into the toilet.”

Another big problem with Obamacare is the pre-existing conditions.  Denninger says, “When you say an insurance company has to cover pre-existing conditions, what you are saying is if this condition costs $10,000, we are going to make it cost $12,000 because the insurance company has to make money.  The cheapest way to pay for a condition that costs $10,000 is to write a check for $10,000.  That’s just basic math, and yet nobody wants to deal with this.  So, the high risk pools were in the process of collapsing, and as a result, you had Obamacare come into essentially force everybody into the risk pools.  That was the whole point.  Everybody has to buy health insurance and, therefore, force you to take things you cannot get.  For example, as a man I, can never need maternity. . . . If you have these things that I have to pay for in my coverage, but the probability is zero of using it, then what you have done is stolen the money from me and given it to somebody else. . . . I don’t think this can be fixed at the present time.”

Denninger, a professional trader, says the financial markets look eerily like they did just before the “dot-com bust” (2000) and the financial meltdown of 2008.  Denninger explains, “This is the same sort of situation we are in today.  Nobody knows how long it will go on, but you are in a place right now with record margin debt in the United States.  That’s very, very dangerous because at the point the margin calls start, the cascade is almost impossible to stop.  You’ve got imbalances throughout the system.  You’ve got the Federal Reserve where it has to start taking risk off the balance sheet. . . . We all know how this party is going to end.  The building is going to catch on fire, and the door is one person wide, and there are 15,000 people in the room.  The problem is figuring out how far it goes.  At the point the market wakes up to the fact that none of this is going to get resolved at all—ever, that’s when it comes apart. . . . Risk/reward is in a bad place right now.  P/E numbers are very high, and the growth numbers are very low”

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User Info USA Watchdog Interview - Obamacare, Growth And Economy in forum [Market-Ticker]
Aztrader
Posts: 7750
Incept: 2007-09-10

Scottsdale, AZ
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All that common sense is just killing it. Good job
Jethrodull
Posts: 139
Incept: 2008-02-25

North Texas
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The other issue is that if you go to the Oklahoma Surgery Center and pay cash for your $10k bypass, your insurance company will NOT apply that against your deductible. Additional layer of the scam - j
Goforbroke
Posts: 6934
Incept: 2007-11-30
A True American Patriot!
Drain the Swamp!
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Great job! It amazes me how legislators can pretend to be so ignorant about something which is so freaking obvious.

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Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our Light, and not our Darkness, that most frightens us. -- Marianne Williamson
Tickerguy
Posts: 148437
Incept: 2007-06-26
A True American Patriot!
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It's not ignorance it's willful and intentional theft

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Winding it down.
Asimov
Posts: 109341
Incept: 2007-08-26

East Tennessee Eastern Time
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To be fair, it probably is ignorance in the case of somebody like pelosi.

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It's justifiably immoral to deal morally with an immoral entity.

Festina lente.
Themortgagedude
Posts: 10244
Incept: 2007-12-17

saint louis
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Just sayin

What is 'Racketeering'
Racketeering, often associated with organized crime, is the act of offering of a dishonest service (a "racket") to solve a problem that wouldn't otherwise exist without the enterprise offering the service. Racketeering as defined by the RICO act includes a list of 35 crimes. If convicted of racketeering, a person could serve up to 20 years and be fined up to $25,000.

BREAKING DOWN 'Racketeering'
A common example of a racket would be if a group of people cut the tires of cars on a specific street, and then that same group, or one in concert with the one cutting tires offered "protection" to the owners of the cars for a price. This fits the definition of a racket because without the organizations slashing of tires in the first place, the demand for "protection" would be low or non-existent. Other examples of racketeering activity include extortion, money laundering, loan sharking, obstruction of justice and bribery.

The Racketeer Influenced and Corrupt Organizations (RICO) Act became U.S. law in 1970, permitting law enforcement to charge individuals or groups with racketeering. This law made it so that organizations or individuals could be charged for up to ten years of ongoing criminal activity, that leaders of those organizations could be charged for activities that they ordered others to do (for instance, murder and extortion) and gave law enforcement more tools to combat racketeering.

The part of the RICO act that gives it teeth is the prosecutors option to seize the indicted partys assets, preventing transfer of funds and property. This provision makes it so that in the case of a guilty verdict the government would have something to seize from criminal enterprises. Otherwise, it would be possible for organizations to move assets around in shell companies making it harder to seize ill-gotten goods. In addition, this provision made it so it was hard for those indicted to pay for high-powered attorneys. Because of this a many cases are settled in plea deals.



Read more: Racketeering http://www.investopedia.com/terms/r/rack....
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I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Fedwatcher
Posts: 1945
Incept: 2009-04-07

Southern California
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Although many politicians are ignorant on many things, they all know who 'pays' them and have stolen from the public during every step up the political ladder.



"It's not ignorance it's willful and intentional theft"




Vitchilo
Posts: 6126
Incept: 2011-04-27

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Meanwhile airports are hiring pro-ISIS terrorists... and when caught, they are NOT fired.
http://www.torontosun.com/2017/03/28/can....
Quote:
Canadian airport employees IDd as ISIS supporters: Report

A troubling new report suggests Montreals Trudeau International Airport has been infiltrated by radicalized individuals.

According to an investigative journalism report from the public affairs program JE, aired on the Quebec-based French-language station TVA, several employees at the airport were stripped of their security clearance due to radicalization and support for the Islamic State.

The investigation found that one employee with airport security clearance reportedly shared Islamic State propaganda videos, including graphic imagery of torture and murder, through social media accounts.

Another individual, according to the report, suggested that the November 2015 Paris massacre, carried out by Islamic State agents, needed to be replicated.

One of the radicalized employees reportedly had direct access to runways and aircrafts at Montreals airport. This employee allegedly had a great deal of knowledge and documentation about military-calibre assault weapons.

And yet, according to the report, this individual still works at the airport, and has simply been moved to a new post away from runways and aircraft.

WTF

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We hang the petty thieves and promote the great ones to office.
Ckaminski
Posts: 4024
Incept: 2011-04-08

Mass-Hole!
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> military-calibre assault weapons.

So does anyone with access to Google. :-/

Does he know which end is the pointy end?
Ktrosper
Posts: 3252
Incept: 2010-04-06

ft collins co
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awesome Love listening to you guys converse.
KT

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The unexamined life is not worth living.-Socrates
The only stable state is the one in which all men are equal before the law.-Aristotle
Liberty exists now in the spaces government has not yet chosen to occupy.-Doc Zero
I anticipate that 10 Dallas Cowboys Cheerleaders will blow me this evening.-K.D
Aztrader
Posts: 7750
Incept: 2007-09-10

Scottsdale, AZ
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Had a discussion with an individual on this new healthcare scam that they tried to pass and this "conservative" was strong for the pre-existing clause that the GOP keeps in the bill. I told him that the clause is one of the primary reasons that the rest of us are getting raped by our insurance companies in order to balance the risk to support these people.
This person works for a big company that gives him his health insurance and since I have to buy my own, I see the real dollar damage it does to my spending elsewhere. I asked him what he though a fair percentage of my income would be for health insurance costs and he thought 5% was reasonable. When I told him where it was at, his eyes just glossed over and commented that
"who could live on what's left?"
The people in power don't give a crap about the people that are forced to pay their own premiums with no basic coverage. Karl is 100% right on paying cash for incidentals and having the insurance for a catastrophic event. Someone needs to develop a network of doctors that will work for cash and publish this on a website with their prices. May be difficult to do because their masters may punish them for under cutting the insurance companies.
Jack_crabb
Posts: 5167
Incept: 2010-06-25

Peoples' Republik of Maryland
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Aztrader: seems to me that the individual you had that discussion with would have answered the following statement: "Did you know that the two biggest problems in the US are ignorance and apathy?" thusly: "Nope. I didn't know and I don't care."

Which is exactly why we are in this situation and why our genial host (among others) has about had it.

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Molon Labe
Where is Henry Bowman when you need him?
How many are willing to pledge this? We mutually pledge to each other our Lives, our Fortunes, and our Sacred Honor

Reason: Added last sentence.
Cerich
Posts: 933
Incept: 2008-12-17

ga
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bless you Karl...but nobody remembers the name of what had to be one engineer engineer that said "we should really use helium instead of Hydrogen in ze Hindenberg, the cost of helium is worth it"
Tickerguy
Posts: 148437
Incept: 2007-06-26
A True American Patriot!
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"But with helium it doesn't lift as much, therefore it can't carry as much cargo, and besides it's more expensive."

The sentence spoken before one of the many times throughout history that the use of the word "****!" was fully justified.

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Winding it down.
Analog
Posts: 1389
Incept: 2010-12-29

arkansas ozarks
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Quote:
"we should really use helium instead of Hydrogen in ze Hindenberg, the cost of helium is worth it"


If i remember my documentaries right
Germany was still being punished for WW1. Helium was on the list of things they weren't allowed to buy.

As usual, Politics and Physics didn't mix .

a.

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Never trust a computer with anything important.
Uraki66
Posts: 17
Incept: 2015-12-27

Kansas
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Aztrader,

You can visit http://www.dpcfrontier.com/mapper/ to see a map of where the current Direct Primary Care practices are.

Note that these doctors are going to want a monthly fee, so it's not exactly walk in and pay cash, but it's the closest thing we have right now.

Most of these places have web sites (just click on the dots on the map to get a link) and most will have prices listed.

Some states have laws that make DPC less practical for doctors and each practice can charge what they want and have different rules/price points & specialities.

While nothing keeps the doctor from accepting insurance & direct care (that's the hybrid dots on the map), I think most find that by dumping the insurance they save a ton of hassle & money.

I know Karl doesn't like this, but doctors have to eat, too! By charging a monthly fee, they get a steady income. Whether their monthly charge is too much or not is a another discussion.

Maybe Karl could set up an interview with Dr Umbehr and the OKC Surgery Center and record it to be posted in a ticker so they could bounce questions off each other.
Capcon
Posts: 20
Incept: 2016-04-11

Tulsa
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Awesome! Moment of truth in the video was at 10:12 min. Keep hammering THAT home Karl. Not everyone can understand some of the arcane economic theory you delve into sometimes, but even the simplest of minds recognize the problem of not having cost transparency, especially when using such analogies as the car repair shop that doesn't tell you what your car repair costs are going to be until the repair is already finished.
Any idea what kind of exposure a segment like this gets? And do I not have any takers on the idea of setting up a fund to pay for wider exposure of this topic, say, perhaps a full page ad in the wsj, or nytimes for Karl to lay out the main issue for the world to read?
Cerich
Posts: 933
Incept: 2008-12-17

ga
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a interesting quote from a Medical Office that doesn't take insurance for office visits

"We believe that using health insurance to pay for a medical office visit is like using car insurance to pay for an oil change"

http://www.harrisinternalmed.com/
Tarmoney
Posts: 452
Incept: 2008-01-23
A True American Patriot!
LI, NY
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I was sitting in the barber's chair and we were chatting about the mess of repealing Obamacare. He was focusing how to make insurance more accessible and affordable. I told him it sounded like he felt pretty desperate about making sure he had health insurance in case something bad happens.

So I said you know, your worry sounds a lot like having a tough looking guy in a long overcoat come ring your front door and say "You got a really nice house here, it'd be a shame if something bad happened to it. But if you pay me $500 a month I can make sure nothing bad will happen"

He looked at me and the light went on.
I said, "that's what health insurance is. That's why your EOB says 'billed $600, paid $78'"
He said, 'you know you make a really good point. I never though about it that way.'
Then I mentioned what is possible without paying insurance and sent him the link to OK Surgery Center.
I planted a seed.
He talks to a lot of people sitting in that chair.


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"Then have a recession. It's a financial enema for a sick animal." - Rick Santelli
I really can't wait to see all these guys twist on the rope... -me
smiley
smiley
Aerius
Posts: 880
Incept: 2008-03-19

GTA
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Quote:
Meanwhile airports are hiring pro-ISIS terrorists... and when caught, they are NOT fired.


Former airport worker here. Thanks to the various airport workers' unions, it's damn near impossible to fire workers, even if they've been caught running a multi-million dollar drug ring out of the facilities or their gross negligence burns a warehouse to the ground. The unions will literally spend millions in lawyer fees to tie the cases up in court for years, so unless the worker goes "Allah Akbar!!" and resets the ILS to crash an A380 into the ground they just can't get rid of the ****ers.
Vitchilo
Posts: 6126
Incept: 2011-04-27

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Aerius : that's crazy. I understand the unions are crazy but if I were a cop in Montreal, I would go there and arrest em... and also arrest the bosses for hiring people with no background check... not to mention the employees are never under the same security has everyone else before going to their jobs... meaning they could bring explosives in, no problem. This is just nuts.

In related news...
http://www.zerohedge.com/news/2017-03-29....
Quote:
ABC reports that retired teachers in Texas are projected to pay double or triple their current premiums for healthcare beginning September 1.

Oooops

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We hang the petty thieves and promote the great ones to office.
Tickerguy
Posts: 148437
Incept: 2007-06-26
A True American Patriot!
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Naw, there's no pension problem.....

smiley

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Winding it down.
Topgun
Posts: 60
Incept: 2016-09-10


Banned
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A quote from a poster on the Youtube video:

"Karl Denniger has the best take on why the health care system is so ailing. I have worked in the healthcare trenches as a small vendor for small private practices for 30 years, and have seen their practices destroyed by monopolistic central government and big-med business. The government has thrown away the antitrust laws, and is in bed with big insurance. The special interests have placed themselves between every one of the 3 Trillion dollars that flow from patients to doctors, and skimmed 85% off the top. Medicare and Medicaid now require so much special reporting by private doctors, that they can't possibly survive. Karl has the right models for how to cut 75% of the cost very quickly, and most of it is simple common sense. I hope Congress and HHS will take a good look at this video. And, thanks Greg for getting this on video. - Irv Paton4"

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When Revolution comes to America, I want to shoot these sumbitches with Black Powder so they know Im not blowing smoke up their backsides.
Topgun
Posts: 60
Incept: 2016-09-10


Banned
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Raise your hand if you can afford this.

Quote:
The drug was developed by Genentech, part of Swiss drugmaker the Roche Group. Genentech, based in South San Francisco, California, said the initial list price without insurance will be $65,000 a year.


Quote:
Ocrevus will be available in the U.S. within two weeks, Genentech said, noting the average price of MS medicines has quadrupled over the past 12 years.


Quote:
He forecasts peak sales of $5 billion a year.


http://hosted2.ap.org/APDEFAULT/bbd82558....

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When Revolution comes to America, I want to shoot these sumbitches with Black Powder so they know Im not blowing smoke up their backsides.
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