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It’s one of those big news days again, with two key storylines dominating market action.
First, Greece. Remember the “NeverEnding Story”? I watched the movie at a friend’s birthday party when I was 9. I loved everything about it – from the flying dog/dragon Falkor to the fantasy storyline to the well-done (for the early 80s, anyway) special effects.
This NeverEnding Greek Story? Not so much! I doubt I’m alone in wishing the darn thing would finally come to an end one way or another … and it appears most of Europe is on the same page now.
Malta’s Finance Minister Edward Scicluna told Bloomberg: “We have run out of comments and also run out of patience.”
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The Greek crisis never seems to end, but the battle over Obamacare might finally be settled with the Supreme Court ruling. |
Finland’s Finance Minister Alexander Stubb added: “It’s quite the ping-pong back-and-forth … the worst case scenario for now is that we continue this tomorrow.”
Over at the Financial Times, you can find the headline “Creditors issue bailout ultimatum to Greece.” And at USAToday.com, there’s the headline: “Greece faces final ‘take it or leave it’ debt moment.”
If anything, creditor nation demands have gotten even more stringent in the past day or two. They’re looking for more spending cuts, fewer exemptions from Value Added Taxes, and more pension reforms. Greek officials reportedly responded that those would bring “Armageddon” to their country.
Not exactly the kind of thing you’d hear if a deal was closer rather than farther off. It all leads me to believe we are literally a day or two, at most, from the endgame. Either …
Greece caves and accedes to creditor demands, in a way that Prime Minister Alexis Tsipras’ party will support. That would ensure the country stays in the euro for now, even as it wouldn’t prevent us from being back in the same mess a year or two down the road.
Or Greece defaults on its June 30 1.5 billion euro payment to the International Monetary Fund, and its European bailout program expires. That would likely result in capital controls for Greek banks, an exit from the euro currency union, and turmoil across European markets.
I may have enjoyed fairy tale and fantasy stories as a young kid. But I don’t believe in them anymore. And the cold, hard reality is that the NeverEnding Greek Story looks like it won’t end anywhere near as well as the NeverEnding Story did.The second major news item of the day: Obamacare survived its Supreme Court challenge. In a 6-3 vote, the nation’s highest court ruled in the King v. Burwell case that subsidies are permissible in both states that have their own exchanges and states where consumers need to use the federal insurance exchange.
More than 6 million Americans could’ve lost the government tax credits that make Obamacare insurance much more affordable had the vote gone the other way. That, in turn, would’ve led many to cancel their coverage – forcing premiums even higher on remaining customers and ultimately calling the entire program into question.
Obamacare has now survived two Supreme Court challenges, making it much likely to endure. There’s always the chance a future president or Congress could modify the program. But for now, it removes a huge amount of uncertainty for health insurers, hospitals, and other parties.
“Hospital shares soared on the news.” |
Hospital shares soared on the news, because expanded insurance coverage will bring more patients in the door. It also means fewer bad debts will pile up, since insurers will be covering their bills. It’s also likely good news in the longer term for health insurers, pharmaceutical firms, and medical device makers.
So now it’s your turn to weigh in. Are bond and stock markets destined to tank if Greece gets kicked out of the euro? Is a last-minute deal still possible, and what market impact are you expecting from that? Is Greece a sideshow to the market, and if so, what should we be focusing on instead?
What about the Obamacare ruling? Do you think the Supreme Court did the right thing? Or should the subsidies have been rescinded? Do you have any health care investments that are benefitting from the ruling, or are you considering adding them?
These are weighty issues, and I’d love to hear your thoughts at the Money and Markets website.
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My piece on the energy markets yesterday prompted some great debate over at the website. If the bulls prove right, then energy stocks could be a fantastic investment here. But the bears are definitely putting up a fight.
Reader Bill came down on the bearish side, saying: “My family was in the oil business (e&p and gathering) for nearly 100 years. I still have many old friends who have been in it for generations and (as we all did in the ’70s and ’80s) have made a killing on the run-up.
“But as we all knew going in, the boom would be followed by a bust. Now we’ve had the bust. I don’t have a crystal ball, though I would pay a fortune to have one. But the cumulative decades of mine and my friends is that, barring an exogenous shock, the price will go lower and stay there longer than you can ever imagine.”
On the other hand, Reader Jim cited his family’s background as reason for optimism. His take: “The recent flood of new production was made possible with massive amounts of QE cash that is unlikely to be available in the future. The new oil is all very expensive shale, oil sands, and offshore oil.
“While there are certainly unconventional projects that are possible with $60 oil, the boom is over until prices go considerably higher. My family has also been in the production business for many years and I feel the price has at least stabilized here and will be headed higher in the not too distant future.”
There was another great exchange on the timing and depth of the bust cycle online, too. Reader Myron R. said we haven’t seen enough pain yet:
“I live in the Houston area, which is very dependent on the oil industry, and I have not seen the pain we saw in 1986, not as of yet. There has been pain in the service sector, to a degree, but no E&P companies have gone out of business and there are lots of uncompleted wells that are slowly being fracked, completed and coming on line.”
But Reader Oil Guy countered with the following:
“I disagree. You seem to assume that there is no time lag between rig count and production. Look at the history. You will see that it takes six-to-nine months for production to peak after rigs start declining heavily. It amazes me how many of these self-proclaimed experts gloss over this fact time and time again, so it’s understandable why so many are confused.
“The article states that rig counts have declined 28 weeks in a row. That’s about seven months, and what do you know? We’re right in the middle of a recovery from the $40s and $50s. We’ll continue to inch our way up to the $70s and then we can have a talk about how domestic production is creating an oil glut. If you’re an investor, unfortunately you’ve missed out on a lot of strong recoveries on leveraged companies already if you’ve been waiting for production to peak.”
Thanks again for the comments, if only because it means we don’t have to talk about Greece for a little while! Personally, I’m watching the increasing tide of deals in the energy space. That seems like confirmation to me that the “smart money” is starting to get active.
If we get even one mega-deal, like the ones we saw the last time oil prices were depressed, that will likely really open the floodgates. CNBC’s on-air reporters and anchors talked about hearing “murmurs” of deals just this morning … let’s see what it comes to.
In the meantime, keep those comments coming when you have time. Here’s the link.
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President Obama got his trade negotiation authority thanks to a Senate vote yesterday. Now, he will need to hammer out the details of the Trans Pacific Partnership with 12 countries as diverse as New Zealand, Chile, Singapore and Japan.
Bond yields have jumped more this quarter than at any time since the “Taper Tantrum” in 2013. But those stubborn bond managers aren’t giving up on their dreams, despite quarterly losses on U.S. Treasuries of around 2% and several billions of dollars in bond outflows.
Guess what: There’s another government investigation of another mega-bank focused on another questionable practice. This time, it’s the Securities and Exchange Commission looking into J.P. Morgan Chase (JPM) and the bank’s sale of investment products. The bank reportedly tried to sell its own proprietary products to high-end clients to boost fees; a settlement of unknown proportions is likely.
So are you as “shocked” as I am to hear about more alleged banker malfeasance? Do you think the bond market has more pain ahead? Let me know your thoughts on these or other stories at the website when you have time.
Until next time,
Mike Larson
{ 58 comments }
Re; Affordable Care Act: Now that we have everyone or most everyone covered by health insurance, we can begin to address the real problem, the outragiously high cost of health care in this country!
The ACA was written by the insurance companies for the benefit of the insurance companies. Classic crony Capitalism. Wouldn’t you like to have a business where the public was forced to buy your product and have its cost subsidized by the US taxpayer? Free Market solutions offer to only possibilities for cost containment. In the current political environment this will never happen. Jim
Personally, really quite tired of listening to and hearing about the “Greek Problem.” Get over it and move on. As far as the oil pricing goes, one Weiss guru says sell your stocks, another predicts the price of oil going down to the $30’s……….and you saying look for bargains. hard to look for bargains if oil hasn’t bottomed yet. Whom do we believe?????
Sadly, there seems to be no limit to the greed of the major banks. Is it possible that they are too greedy to learn? Or, the over-sight agencies lower the boom on one, or more of the BIG ones?
After waiting three months for the opportunity, my U.S. Representative (a RINO) called me this morning to discuss an idea I have for his sponsorship of legislation that I believe would be helpful during times of local or nationwide duress. Not to get into any details, I can only say that our conversation did nothing to provide me with any optimism regarding our national political system or the future of our country. Our conversation only served to solidify my personal belief that the United States of America has seen it’s best days, and is in the process of slipping into the abyss of past glory and irrepairable political demise!
Let’s face it. We have lost our free country. The first state that leaves the Union , I’ll follow ,rather then live under socilisim I ‘ ll prefer death as a free man.
2 items,No 1 Lets get real, give Greece 5trillion loan and what happens 2years down the road,a even bigger disaster.
No 2.God I feel for you guys(obamacare) I hear some of guys being hit hard with costs,it seems like, fall ill in US,and it will be cheaper to crawl into a corner and die,after all most have only so much money, after that what?
With Obamacare (euphemism for socialized medicine) surviving yet another challenge, do you recommend a serious position in our portfolios for healthcare and/or drug company stocks? Doubtless, many investors have shied away because of the uncertainty.
Thanks,
Bruce
I have a suggestion, Bruce, why don’t you BOYCOTT the whole idea of catering to the drug lords of this country that have sold OUR souls down the river for profits. Socialized medicine is the “pc” term for social registry and the medical industry is fast becoming the local/community militia. YOUR medical care, since you have chosen to equate that with insurance, is now based on the governments willingness to pay for your bills. There is no longer the Hippocratic Oath, in which EVERY life matters, it is only the profits of premiums vs. claims and now, our elected officials [either party] and appointed judicials do not work for the people any longer.
Further, if the only issue here is how do you get your piece of the pie, then I suppose the liberals will be correct in blaming the conservatives for this mess. It will be very apparent when your “patriotism” is measured by how many shares you hold.
The health care bubble should pop soon. You can only bleed the people so far before the premiums break them. Health care does not matter when you cannot afford food. Always follow the power and follow the money. It is not about “Health Care”.
With Obamacare, you as a citizen are now REQUIRED to pay those premiums.
I agree with you that Obamacare is not about healthcare, but it will not be easy to back out of participating in this fiasco, no matter how costly and faulty it will be. And it will only get much, much, much worse.
I wish someone with knowledge would explain what and where all the tentacles are if Greece defaults. Facts seem scare…just like before the market melted down in 2008. As if no one knew the rating agencies didn’t understand the CDOs, to their own admission, yet they rated CDOs highly; that CDSs were sold, sold, and sold again making a loss immense; and counter party risks; etc, etc. I fear similar risks could be true now…that there are telltale signs out there but no one seems willing to authoritatively say, “here are the problem areas and the magnitude” Here’s what could happen. That would be incredibly useful.
As if European taxpayers were not taxed to death already, they now support the poor countries. Greece needs bankruptcy, they will never pay back what they owe – stop the pain. What the Europeans fear is that Greece will do much better with their own currency and more will exit the EU. Liquidity will suffer and the other basket cases will see interest rates shoot up.
“Affordable” Care??? Anybody seen the premium increases and the outrageous deductibles? What I hear is that people are NOT going to doctors because they cannot afford the deductibles. The Federal government has become a criminal enterprise that is raping the American citizen.
RE: JP Morgan; Why do I have a feeling that there are so many laws on the books, really an uncoordinated mish-mash that while obeying one set of laws you are violating another set. That some laws are so vague that it is impossible to decipher them. Business says one thing, government regulators say another thing. I also think the government has simply gotten to the level of blackmail artists, they pick and choose which laws to enforce and which to ignore. And different agencies fall all over themselves in their “enforcement” activities, one says you are legal, another you are not for the same act Why we don’t need a wide eyed liberal for Attorney General. There seriously needs to be a huge reform that throws all the laws out and a single code replacing them, which will never happen. All that will happen is Congress and the regulators will throw mud into the waters.
Ted, it’s what we get for electing over and over again, the same bunch of career politicians, who mostly started as lawyers, and who think the answer to any problem is to enact a new law or regulation. Result: nearly anything you do can be deemed illegal according to some law or regulation, or the interpretation of same. That is the road to totalitarianism, not to democratic freedom. We are even getting political dynasties, where offspring follow the parents or siblings into office, like the royal families of Europe, etc. Anyone who votes a politician for a new term or a new office is playing into their hands.
“For my friends? Anything. For my enemies? The Law”
First of all, I really like this digital daily newsletter, and enjoy the reader comments. Back in 2005, 2006, & 2007 I called the real estate and stock market to a T (whatever that actually means). But since then I feel like an idiot, and can’t figure out much in the markets (of any kind). I agree with the comment regarding all the perpendicular advice we are exposed to each and every day. Staying in cash a bit longer I reckon.
If Obamacare subsidies were not allowed it absolutely would NOT be the end of the world like the handwringers say. The Republicans could simply pass an extension, or something else to make those people whole until a real solution could be formulated. The problem is the Republicans, in all this time, would not say publicly, we will NOT let people receiving subsidies fall through the cracks. How simple would that have been? And because they didn’t, you have to be very skeptical that they will actually repeal ObamaCare even if they have the Presidency and control of both houses after 2016. I think most are big Gov bureaucrats and know that some day they’ll be in power and then they can take advantage of having the power over everyone’s healthcare. It’s a very sad situation.
The Dems would NEVER take a promise such as that. They play hard ball 24/7 to get their socialist agenda. No backing down. Ever.
My reaction to all Obamacare subsidies being sustained?
. . . A HUGE, HUGE SIGH OF RELIEF!!
Thank you, SCOTUS, for remembering that, behind these laws and debates, are men, women (including me), and children(including mine) whose lives are so much better because of the Affordable Care Act .
I hope you like the price, Susan. You will pay it, or your children will, sooner of later.
If you are comfortable with the concept of your neighbors being forced to pay for your and your offsprings healthcare you will have no right to complain about the things you and your children are forced to pay for in the future. Nothing is free. You disgust me.
Hi Susan,
Just wondering… Do you pay the full deductible of 4 or 5 thousand $ or is that also subsidized
by those who are paying the full premiums because they make over-the-limit for a subsidy?
Hi Susan,
How does it feel to be a parasitic leech?
Are you on food stamps also?
How do you like your Obamaphone?
Section 8 housing?
May I suggest you take a look at Greece and Puerto Rico?
And Jim, you say “Nothing is free”.
Not true. Some things are free–the sun, the wind, the stars, etc. The failure to distinguish between that which is “free to all” and “free to some” (while others pay for it) has placed us where we are. Hang on, this ride is gonna get ruff.
always,
tony
The shenanagins of the biggest banks will continue because no individual has been seriously punished for past misdeeds. Oh some corporations have paid substantial fines but they are drops from their bucket. They will continue to fleece the public.
Re: Obamacare. Frankly, I hate when the government mandates anything that ends up being a tax on its citizens.
That being said, in my opinion, there are many more pluses than minuses — for the country, its citizens and the economy as a whole — by making sure everyone has access to medical care.
However, I’m opposed to “profit” organizations getting a slice — a huge slice of the pie. Given the mandate, I believe that the Medicare model should be utilized since we now have a nationalized medical program.
Insurers will argue that they took a “huge” reduction in their “overhead” allowance (going from an average of 30% of premiums to ‘just’ 20%). . .BUT, the premiums generated are now MUCH larger now that previously uninsurable individuals are able to access coverage.
18% of $1.5 Trillion a year is a lot of money that could be spent on MANY other important endeavors rather than a select group of insurers and their investors to make out like bandits.
I agree with you. If people really want to be on gubmint healthcare programs…let it be medicaid all the way….. and let us just pay the huge taxes for them that way. To make us take crappy insurance all the other insanity associated with Obamacare is government at its worst.
Mike: “More than 6 million Americans could’ve lost the government tax credits that make Obamacare insurance much more affordable had the vote gone the other way.”
Yeah, those are the 6 million that leech off their neighbor’s hard work. They will continue to get free medical while their neighbor pays thru the nose. Thank you Mr. Obama and Ms. Pelosi for making some middle class Americans winners and some losers with your Socialist Obamacare pipe dream. My insurance rate has gone up 250% in 3 years and I now have a $5,000 deductible…..(this is horrible).
Obamacare is a Socialist POS that I AM REQUIRED TO BUY. And that is putting it as politely as I can. Thank you Supreme Court and John Roberts for once again supporting the Obama/Pelosi unconstitutional Socialist pipe dream that forces an American citizen to buy a faulty product.
My only answer is to retire early so I can QUIT FEEDING the big gubmint beast they have created.
Hi Fred,
I just heard that the average American is not as able to save for retirement as they were
a couple of years ago… 30% have no savings at all..
Hmmmm?? Nah!! That could not be due to
these extra expenses, Could it?
RE: ObamaCare Subsidies – I have to question your assumption that by reducing the number of people who receive subsidies, prices will rise. I believe the exact opposite to be true. The fewer people coming to the “trough of free”, the less cost to all of us who pay for our own health insurance.
Re S.C.O.T.U.S.
My question is “What’s the difference between S.C.O.T.U.S and S.C.R.O.T.U.M.? Neither entity it seems can read the English language nor unambiguously understand four little words. Maybe its’ like the U.S.A. generals’ reply to the Germans in WW II when asked to surrender during the Battle of the Bulge which was “NUTS” . To a German the reply could initially be ambiguous but not for long.
Lets not forget that SCOTUS once declared that slaves were basically property and that the slave owner owned them outright – They were wrong back then too.
Re the Greek financial situation it has to come too an end sometime. Set the country free and let the financial system learn a fabled lesson: “Beware of Greeks bearing gifts!”
If any bank loans such a mismanaged country again; that bank deserves to also fail. If any bank even ever considers such loaning activity, then by possibly a new consumer law, it needs to communicate that decision to all its shareholders 10 months in advance so they can “DUMP” their shares if so inclined. If any investor bought into Greek Bonds they took a risk knowingly – I hope – they deserve to suffer the results not any other taxpayers nor indulgent entities like the IMF for instance. Greece needs to take its’ medicine and vote for better/believable fiscal management in the future.
I’ll be happy to send Red Cross packages to Greece to tide them over in this self created financial storm situation.
SCOTUS is made up of lawyer/politicians, and they can little more be trusted to correctly interpret law than they can to enact law. They are a part of GOVERNMENT, after all.
Dependency wins again. Every time a difficult decision like this has to be made the propaganda machine will make it sould like it will hurt the poor. It always puts us between a rock and a hard place because most of us are caring people and we don’t want to see anyone hurt. So I think we should vote to let the government take over everything and support us all so we would not have these situations. Anyone with any sense knows that doesn’t work and has never worked in the history of the human race, so we should follow Margaret Thatcher’s advice; “Under a socialist form of government, sooner or later the government will run out of everyboby else’s money”. Then we will be able to solve the problem.
The United States is now the same as many, if not most, countries on the planet. Rule by men and not by law. Sad thing is, apparently a majority of Americans applaud this catastrophic decision by the 9 unelected, unaccountable black robed junta. Enjoy your government health care “Boobus Americanus”. You made your bed, now you have to lie in it.
Why the Cold War.?Weve lost without even fighting.we are going so far to the Left even Rusia & China will envy us.
Bankers are close to becoming the next group labeled “unamerican”. That is, Over charging and/or selling financial pseudo-products to make profits for themselves at the expense of their clients. On the other, this has become so common in America, maybe IT is the norm now.
Personally, I think if Greece fails in paying its debts, getting kicked out of the union and losing access to the Euro will only hurt Greece, with little effect on the rest of Europe. And Europe may done itself a favor in the long run. And Greece and the rest of the near-bankrupt countries will have learned an important lesson. Do you think America will learn that lesson and stop spending it doesn’t have with “created” money that has no backing. Curse Trickey Dicky Nixon for removing us completely from the gold-backing requirement that worked so well for centuries, in 1973 wasn’t it? Since then our world financial markets have been in turmoil, creating nothing but problems in countries around the globe.
Are these activities just the lead up to the predicted Armageddon. Could well be.
SUMMER OF POLITICAL SOAP OPERAS
This is the Summer Doldrums, characterized by little new activity in the stock markets or in the news. Some convicts escaped a New York Penitentiary and are still on the run. However, the insiders who aided in their escape have been arrested. Soon, they can renew old acquaintances anew as inmates together doing hard time.
Confederate Flags are prohibited at Wall-Mart and not for sale. Were there any buyers For them before this Summer? A gender-challenged Bruce Jenner has had his “15 minutes in the Sun”, as the late Andy Warhol used to say. Every dog has its day.
Obama-Care was a slam-dunk again in the Supreme Court, this time it was 6:3 for it. Two for two. Clearly, Chief Justice John Roberts is being both a good Catholic while doing God’s work for the uninsured (poor) and his fellow Liberals in Govt. all at once. He will receive his reward in heaven, no doubt. Was there any doubt what his position was after upholding the ACA in 2013. Sure not with me. Republicans need to move on. They lost.
TPP Passed the House and Senate. Now, we have NAFTA with Asia and Europe. ( China and Russia are except). Donald Trump is right, our politicians can only pass bad deals with our competitors overseas. They are stupid in their own right, but so is the voting public. We can no longer vote our own best interest. Nobody knows what that is anymore.
We don’t agree on much except the South Carolina church shooting was really bad (Dylann Roof). Taking guns away from everybody else will keep us safe from the next loon. yea, right. We did not learn from the Charlie Hebo massacre in Paris, France last year. Admit more Muslims and we have little to fear. Again, we do what is not in our national interest. Donald Trump is right about admitting people who have problems, making America the world’s biggest “dumping ground”. He is politically “incorrect” but largely spot-on otherwise. He can not be elected. Waste of money?
I’m hearing lots of “repeal and replace” comments after the Supreme Court ruling on the Affordable Care Act. What I’d like to see from both sides in congress are actual well thought out proposals for legislation that would modify the ACA so that it is more cost effective, reduces the 25%+ increases in premiums that are on the horizon and still assures that those folks who have pre-existing conditions can still be insured. Delivering medical care for the masses through emergency room services has never been a cost effective solution.
Prediction: Greece to default, PM has been playing for time, in case the Troika try and replace him with a stooge. This is their best chance in the long running saga to break free. Won’t be easy but at least they will be free.
How can I excited about any Affordable Health Care court victories when all the subsidies for the low income and the new trade bill have come out of Medicare. I am being denied even visits to the drs when I am suffering with a bacterial infection that takes one out without cure. I don’t know how much time I have left.
I have not been “shocked” by anything the banks have done since the Savings and Loan fiasco. However, the last one which sent the housing market into a spin had more affect on me personally. Florida was kind in lowering my appraisal after buying near the peak of the top of housing prices. It would matter more if I had any desire to move.
Nothing that Obama, Congress or the Supreme Court does surprises me. Anyone who though that the Supreme Court would rule against Obama regardless o the merits of the case or the US Constitution were just deluging themselves. Once you live outside of the USA for a while, as I do, and you escape the constant brainwashing and propaganda you will realize just how corrupt the country has become. The only people who scare me more than the Republicans are the Democrats. Nothing will change regardless of who is elected.
Regarding Greece, is is blatantly silly to think that a group of countries who have a 1000 year history of war will from a lasting union.
IF and when the US stock markets corrects it will just provide an opportunity for astute investors and traders to make more money. Beware of ‘Stupid News’ and look out for yourself. The government is not your friend.
Tom
Well now that Obama care has passed another hurdle the American people can eat more junk food and get sicker and no worries it’s all paid for . I think it’s time that people realized that they should quit eating food that does not nourish the body . I think it’s time people realized if it comes in a box , then forget it . Processed food does not work people , WAKE UP !
So everyone will have health care, but who will be able to pay their bill? The only people that will gain money out of this will be lawyers when they take people to court for being behind in payments!! So what will be the next law the high court hears that they say intent of the writers makes it possible to change it to what ever government say they what it to say like EPA, IRS, or transportation, which means wealth can be taken at any time so money is nothing but a means to slavery
Aloha Friends! One interesting fact here…there are NO Mechanisms for a country to be expelled from the Euro Zone…google it mahalo for reading
I think the epicenter for a major market decline will be the overheated market in China.
In my opinion, the world economy will never straighten out and get back on track until some of those major bankers start going to jail and everyone agrees on reasonable, common sense regulations that will stabilize bank practices! Look what Iceland did and then let everybody follow Iceland. The banking system itself doesn’t have to fail just because some of the CEOs pay for their crimes. fredgibson380@gmail.com
Isn’t the real problem with healthcare that people don’t have enough money to pay for it? My parents never carried health insurance. They were sent a bill and paid it. The cost of my birth was $125 and the hospital gave them six months to pay it. My last child cost almost $12,000. The difference is that a dollar was a dollar and my middle class parents were not forced to pay half what they made in taxes and fees as I am. The massive government bureaucracy that is overwhelming our country’s once vibrant economy is the problem. With impeccable logic they tell us we can’t afford things because we selfishly aren’t giving them enough of our money. We are a nation of 300,000,000 first class suckers. Jim
It is about time everybody took a deep breath and realised that Athens is not about to give the cuts demanded because it would be political suicide so either Europe caves or Greece exits.
Either way the world will not stop.
The more interesting thing which is being hidden in the smoke is the increasing Russian and Chinese influence in Greece which will explode if Greece exits.
Greek exit is wonderful thing. Finally some country has to pay the piper for its socialist dreamworld.
I say it will be great to let Greece go to China or Russia. They deserve it. They will probably love the benefits.
Chief Justice Roberts,a wolf in sheep’s clothing, and his ‘minions’ have ruled. It appears the WORD of law no longer applies. Now expediency and the adjustment of ‘intent’ applies, not what is written into law. This bodes poorly for all future legal protections citizens have against their governments, including protection against unjust seizure of property for commercial development via eminent domain or seizure of weapons by the authorities up to and including losing the protection of the Bill of Rights which is the supreme LAW. A lot of money was spent by the medical devices and treatment industries to sway this decision. I wonder how much of it went into the pockets of the Justices that ruled in favor of Obamacare.
Hi!, Patrons Of Money & Markets Et. Al.:
Regards Greece’s potential to “default” brought up by Mr. Larson: This is an untruth probability; as the IMF would consider Greece only in “arrears” and not default and this allows for a two year interchange of ideas on how to extinguish their arrears along with other countries also in arrears. The stringency therefore given to the word “default” is now modified with the lesser term “arrears” which is totally different in connotation regards how markets would respond to a Greek loss of their payment due to the IMF. Thus, in my humble opinion, we will need wait and see how the IMF officially concludes their response to Greece’s non payment of their debts due won’t we? Therefore, throw the word “default” off of your vocabulary list regards Greece and substitute the less offensive word “arrears” instead dear reader.
RUSS SMITH, CA. (One Of Our Woeful, Broke, Fiat Money Corrupt States)
resmith1942@gmail.com
Hi!, Patrons Of Money & Markets Et. Al.:
For decades my established response to the robber baron world of inflation/deflation has been, if people like that form of monetary policy front co-mingled with its’ Socialist implications like Hitler and Stalin etc., then why doesn’t the US cause the FED. to emit 100 trillion $ bills twice an hour to every taxpayer some of which we could ship to bail out Greece etc.? Many of my friends struck by Obama-I-Don’t-Care health insurance do a lot of out of pocket paying on high premiums/deductibles plus threats against the system that’s robbing their Middle Class life style out of existence which deludes their incentives to keep working hard without being enabled through their hard labors to get ahead as they use to when the US $ was a measure of gold destroyed when President Nixon irreparably closed the US Gold Window August 15, 1971 robbing all US citizens across the board plus foreign creditors etc. The 1st rule of all economic activities always rules which is so simple even small children can understand it which is: “YOU NEVER GET SOMETHING FOR NOTHING!” Those in any social setting worldwide who think that their government can sponsor something for nothing benefiting them exclusively are suffering only from internal fantasies that can’t come true trapping them into submission to massive government controls over their lives and their property etc. in my opinion. Such are co-dependent, non citizen slaves upon their host government whose love of being parasitized by its’ citizens gives them assent over every major decision that society entertains such as Obama-I-Don’t-Care policies that rob those who work for their living establishing their slavery whether they understand their circumstances involving their slavery or not. Such a Nationalistic co-dependent sense of slavery was enjoyed heartedly by the Masters of the Holy Roman Empire who sent their slaves off to fight the lions for their amusements and purchased and sold their slaves in the open marketplace but such Empires eventually and inevitably in my opinion crash headlong into the arms of foreign legions of one form of barbarians or another just as what happened to Rome and is there any reason that US shouldn’t be next?
RUSS SMITH, CA. (One Of Our Woeful, Broke, Fiat Money Corrupt States)
resmith1942@gmail.com
Mike…..I am shocked that you are shocked by ANYTHING JP Morgan does.Most of their executives should be in prison for past misdeeds but of course we can always bail them out again.
Doesn’t seem to be a Friday issue of Investing Insights, so I’ll add my reaction to SCOTUS gay marriage decision. It may not seem germane to investing, but it does affect spending and the formation of the economic units that are families, so it really is.
All our lives, we are attracted or repelled by other individuals, and after puberty, sex becomes a part of that formula. Does it really make a hill of beans whether the people we partner with are of the same sex or not? Why should people of the same sex be denied the benefits and problems of formal marriage, if they choose it? This was a good decision, to my mind, but it opens up a new can of worms.
Suppose a gay or lesbian couple marry and decide they want children: could’nt they adopt a child bearer or sperm donor into their family? If they choose, shouldn’t that person also have the right to the privileges and responsibilities of the marriage? Polygamy, polyandry, in fact. ‘Seems to be the logical next step, and why not?
Sunday evening, and I see that the ECB has frozen funds for Greek banks, which has caused Greece to close its banks and impose capital controls. How long before this country does something similar? We are more in debt per capita than Greece, when everything is counted up.
How are you lolo Martin i miss you and to all money and markets family,i miss my papa Zanju.
Rizalito Jaway Jimena Jr.
With reference to obamacare, I suggest to you that the greatest effect of this law was to deprive the American public of faith in their government.
1. It was passed in the dead of night on Christmas eve under dubious Senate rules.
2. Our president lied to us concerning our premiums, whether we could keep our doctor, and whether we could keep our insurance. Subsequent documents show he knew he was lying.
3. The supreme court went through all kinds of contortions–saying it is a tax (when the bill specifically stated it is NOT a tax) and claiming that the statement “subsidies are only available to those who purchase insurance through state exchanges” is “ambiguous”.
4. A Congress that PROMISED to defund and/or repeal obamacare if they were elected completely reneged on that promise and appears feckless and inept to deal with it, in spite of the vast majority of public opinion.
Folks, the people want a leader they think they can trust. One will most certainly arise. I hope it is a Washington and not a Hitler.
always,
tony