Posted on 07/16/2014 3:10:53 PM PDT by Kaslin
I thought TARP was the sleaziest-ever example of cronyism and corruption in Washington.
The Wall Street bailout rewarded politically well-connected companies, encouraged moral hazard, and ripped off taxpayers. Heck, it was so bad that it makes the sleaze at the Export-Import Bank seem almost angelic by comparison.
But I may have to reassess my views.
One of the provisions of Obamacare allows the White House to give bailouts to big health insurance companies. Youre probably wondering why these big firms would need bailouts. After all, didnt Obamacare coerce millions of people into becoming involuntary customers of these companies? That should give them lots of unearned profits, right?
But heres the catch. The President wasnt being honest when he repeatedly promised that Obamacare would reduce premiums for health insurance. And since the Democrats dont want consumers to get angry about rising costs (particularly before the 2014 elections), they want health insurance companies to under-charge.
Avik Roy of Forbes explains in greater detail how the White House is coercing health insurance companies to limit premium increases before the mid-term elections. Here are some excerpts.
Hidden in the midst of a 436 page regulatory update, and written in pure bureaucratese, the Department of Health and Human Services asked that insurance companies limit the looming premium increases for 2015 health plans. But dont worry, HHS hinted: well bail you out on the taxpayers dime if you lose money. The White House is playing politics with Americans health careand theyre bribing health insurance companies to play along. The administrations intention is clear: Salvage the 2014 midterm elections. Technically, the regulations dont force health insurance companies to tamp down their premium spikes. But the White House isnt asking nicely. Under Obamacare, insurers are so heavily regulated that they have to play nice with the bureaucrats who call the shots. If insurance companies dont give in, regulators have powerful ways to make life hard for them. A shrewd CEO doesnt need to look far to see what might happen if his company opts out.
But before you feel sorry for Big Insurance, remember that these corrupt companies supported Obamacare and fully expect to get bailed out by taxpayers. Here are some blurbs from an article last month in the Weekly Standard.
Most Americans dont think its their job to bail out insurance companies who lose money under Obamacare, but thats exactly whats poised to happen. Obamacares risk-corridor program which President Obama has been using as a slush fund to placate his insurance allies and keep them quiet about his lawlessness shifts financial risk from insurers to taxpayers. According to the House Oversight Committee, health insurers expect Obamacares risk corridors to net them nearly $1 billion, at taxpayer expense, this year alone. It was a win-win that would boost Obamacare in its early days to the benefit of those whove gained extraordinary power at the expense of Americans liberty, and of those whose product has become mandatory for Americans to purchase.
In other words, we have a stereotypical example of Mitchells Law. Government screws up something, and then uses that mess as an excuse to impose more bad policy!
This Lisa Benson cartoon is a perfect summary of whats happening.
P.S. If youre in the mood for some dark humor, heres the federal governments satirical bailout application form.
P.P.S. Switching to a different topic, its time for me to rectify a mistake. When I first created the Moocher Hall of Fame last year, I didnt include the Octo-moocher as a charter member. After all, having 14 kids while living on the dole didnt seem particularly noteworthy.
But now weve discovered that she could afford her kids. She just wanted other people to pick up the tab.
Octomom Nadya Suleman pleaded no contest Monday to a single count of misdemeanor welfare fraud for failing to disclose income she was receiving from videos and personal appearances while collecting more than $26,000 in public assistance funds to care for her 14 children.
This may not be as impressive as the deadbeat who got handouts while living on a $1.2 million yacht, but still worthy of membership.
How much longer will those who pay income tax continue to enable this administration before they slow down their work efforts, lower their taxable income by every legal method and lower their spending?
Well, the IRS has certainly given us a few new ideas, haven’t they?
bkmk
The whole point of “Federal bailouts” is the very antithesis of free enterprise capitalism. Ostensibly, it is still “capitalism” but capitalism without risk has no moderating factors to govern its possible excesses.
There is no such thing as a “risk-free” environment. Like a free lunch, somebody, somewhere, somehow, is stuck to pay the bill. And it isn’t “Obama’s stash”, no matter how fervently the low-information voters want to believe that such a thing exists. There never was a “Rock Candy Mountain”, either.
Worse than using bailouts to rescue failing companies, is the erosion of trust that ensues, and the conclusion (rightly) that they are all crooks is only reaffirmed.
Al Capone was at least honest about who he was - he was a criminal, he knew it, and did not apologize for it. But he despised the elected officials who allowed him to get away with his continued assaults on the law. Some because they could be bought so cheaply, and others because they were too inept to put together a solid case against him. Remember, it was not until the Internal Revenue Service went after him, that he ever went to prison.
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