Skip to comments.TARP Was Bad, but the Looming Obamacare Bailout for Corrupt Insurance Companies Could Be Worse
Posted on 01/04/2014 10:36:05 AM PST by KaslinEdited on 01/04/2014 10:46:15 AM PST by Admin Moderator. [history]
I hate to dredge up bad memories so early in a new year, but we need to remind ourselves of the awful TARP bailout of 2008.
Our financial system had gone out of whack because of bad monetary policy from the Federal Reserve and unsustainable housing subsidies from Fannie Mae and Freddie Mac.
(Excerpt) Read more at finance.townhall.com ...
The design of OCare, forever underfunded due to lack of paying participants, would require an insurance bailout to be a permanent, very very expensive item on the budget.
But, perhaps, we ARE just that foolish.
The insurance companies all thought they were going to get rich once they helped their “messiah” get his ObamaCare. They made their bed, they should be forced to sleep in it. It should not be up to the TAXED ENOUGH ALREADY (TEA) taxpayers to bail their goatsmellin’ asses out. BIG business is about to learn the same lesson once they get Barry his amnesty. All of their imported “cheap labor” will be joining the unions. The SEIU union thugs are lickin’ their chops right now. BIG business will be forced to pay their amnestized, imported “cheap labor” the BIG bucks. Before you know it, they’ll be needing a bailout too.
good riddance to Ben Bernanke, who predicted 3% growth/2% inflation in 2007....2.8% growth/1.8% inflation in 2008.....2.6% growth & 1.6% inflation for 2009. Never has a Fed chairman been so wrong, so often—but had such a high opinion of himself. Bernanke even says that Congress should not get to second guess him—even when he claims to operate under a “dual mandate of law” written by liberal Democrats in 1977. How can the Fed be “independent” when it follows a law written by Congress liberals in 1977?
Moreover...nobody seems to notice that Bernanke crashed the economy in 2008 by BREAKING the law-which tells him to strike a balance between consumer price inflation & unemployment. He broke the law by easing when the unemployment rate still was under 5%....& before consumer prices fell. Mortgage bonds crashing was a GOOD thing...& falling home prices with gas prices would have been a good thing, not a bad thing....lowering mortgage payments with lower interest rates....at a time of less demand for homes...thus freeing up more investment & consumer spending money.
Bernanke’s violation of the law drove gas prices over $4 a gallon by summer of 2008-—causing the country to turn against capitalism & the GOP—while killing both the supply side & demand side of the economy as capital fled into gold & oil & foreign markets & currencies while high gas prices killed consumer confidence and demnand. Bernanke was awful!
He bought trillions of toxic assets which deserved to be exposed as toxic at a time when we didn’t need much money flowing into housing in the first place.....Bernanke is a moron...and so were the people who designed Obamacare based on the myth that 40 million uninsured was a disgrace and that too much money was being spent on the old & sick & should be redistributed to the young & healthy.
what the aptly named TARP really did was to COVER-UP a bond market Ponzi scheme that was financing the housing mania/boom.....with trillions of dollars raised in international bond markets —which is the real reason why lending standards were lowered. as long as the bonds were popular-before they became “toxic”—there was an unlimited amount of money coming into the mortgage markets to fund home buying. It was believed that home prices never fall—and there was so much money easily raised by selling bonds to finance mortgages—that even if somebody couldn’t make their mortgage payments—there was plenty of money & plenty of buyers in line to buy the home at a still rising price.
But when home prices reserved, then the bond prices fell & the bond sellers had no way to pay the rising yield on the bonds, except by making claims against people such as AIG which was bankrupted by the claims! A true Ponzi scheme that was covered up by TARP!
As long as home prices & bond prices kept rising....mortgage-backed bonds could easily afford to pay promised yield, but when home & bond prices fell....they only had “insurance”, ie “credit default swaps” to pay the yield.
We really didn’t have “mortgage-backed securities” at all....we had bond-backed mortgages-—and when the bonds became toxic, the money going into the home loans dried up-—which was GOOD and didn’t matter-—because demand for home loans crashed, too. 2008 & 2009 was the perfect time to get the bond market OUT of financing home lending...but the government only wanted to cover-up the truth, not expose it.
In fact, if there really were mortgages behind the bonds, then bond holders would have had a piece of all the foreclosure money.....thus the bonds only became toxic because the bond holders really had no claim to the homes in default..proving they never were “mortgage-backed securities” in the first place.
I just hope the tea party and everyone else like minded against bailouts goes after this government hammer and tongs (and its enablers in Congress) if they try to bailout the insurance companies.
I take issue with those who portray the insurance industry as “free market”. They aren’t and haven’t been for a long time. The are used to having State governments run interference for them ... limit competition etc. The are counting on the same from the Federal government.
It’s long past time for insurance companies to learn how to compete or die.
Nothing would please me more than to see the rent-seeking insurance industry get a taste of their own medicine
At what point will our dollars be worthless?
That, and let us remember that SEIU is wholy drug laundering controled. How else can drug dealers enjoy their money without IRS oversight other than getting their slave labor or paid services at the gas pump. All that bling bling is there for a reason. The SEIU would not get their tips without them.
The model should have been of mutual insurances. People liable to participate in case of risky behaviors and then reimbursed if they behaved well and did not use the insurance. No, instead it is government hogs it all on specious grounds of redistribution and mitigating doctor liability insurance.
If they do (bail out the insurance industry), it will be a scam engineered as a bail-out for an industry that should never require a bail-out.
I think we may see insurance company bail outs before the 2014 election.
I can't imagine a better campaign theme for Republicans.
GOP: “We will NEVER bail out any insurance company. NEVER!”
As to Amnesty.....
If Boehner buckles on anything, I swear I will become one of America's loudest and most passionate supporters of the $15/hour minimum wage!