Blue blazes, Southern California is on fire! It burns my heart to think that thousands of acres of forests are going up in cinders. It’s spread from covering an area of 20,00 to nearly 150,000 acres of wilderness since August 29.
Historical data shows, since 1966, the majority of the top 20 fires in California were caused by lightning (7), humans (5), and power lines (3). The most devastating was the Cedar Fire in San Diego County in October 2003 when 273,246 acres were burned. To date, the current fires rank 11 on the list.
While the Cedar Fire took 15 lives, the greatest toll was in the 1991 Oakland Hills Firestorm, also called the Tunnel Fire, in Northern California when 1,600 acres burned, claiming 25 lives, 2,843 homes and 443 apartments.
Of the recently named fires, the Morris, Cottonwood Hemet and Palos Verdes Peninsular blazes have been contained. The ongoing Station Fire, approaching LA, has destroyed over 53 homes and taken the lives of two people, both firefighters.
As the Station Fire rages ever closer toward the northern suburbs of LA, it’s of personal concern. From 1982-1989 I lived in Santa Monica on the poor side of Wilshire Boulevard in a rent-controlled apartment on 16th Street. A mile-long path of sidewalks led to the beaches on Santa Monica Bay, including the entertaining characters along the Venice Beach boardwalk. Standing on my tip-toes on the balcony, on a clear day I might see a tiny patch of blue water but, unless the Santa Ana winds swept through the area, a huge brown ball of smog hung over the water.
The smog was bad throughout the LA basin. This, the high cost of living, traffic congestion and the occasional earthquake would eventually find me commandeering a U-Haul along the full length of I-10 from the Pacific to the Atlantic.
But while I lived in Southern California my times with nature overwhelmed my senses beyond what I could have imagined. Although travel time to escape the negatives of living in LA proper was in excess of an hour, the rewards were many.
One of the locations I frequently visited was Griffith Park, the location of the Mount Wilson Observatory. It was one of the must-see-and-do experiences to share with out-of-state visitors. The towering pine trees provided a solid canopy of shade while the aroma, mixed with clean, fresh air soothed the mind and cleared the nasal passages.
It brings back vivid memories of walking along an open path of solid rock and hardened earth in a rather steep incline from the parking area. Friends couldn’t resist the temptation to make souvenirs of the huge pinecones that, along with a bed of needles, blanketed the entire area.
More often than not, a day at Vasquez Rocks County Park got preferential consideration. The rock formations were awesome. Created over millions of years from earthquakes along the San Andreas Fault, they’re easily recognizable in dozens of past and present TV shows, commercials and movies. A no-frills park, it was a paradise for hikers of any experience. You could stroll along a well-traveled path or take a hefty trek to the cave where Tiburcio Vasquez and his band of bandits were holed up in the wild west days of the mid-1800s. A backpack with water and fruit made for the healthiest of all other recreation options. You could actually get lost.
So many other memories. On Avenues I, J and K, in the Antelope Valley, the rolling hills actually came alive with the breathtaking poppy fields. From miles away, the faint tinge of color became an eventual blaze of orange. You had to watch your step, though – don’t step on the coiled rattlers. A zoom lens kept me a safe distance from one such sidewinder. Still, when it sprang up, my heart raced faster than my footsteps!
Fires are also raging through Tujunga Canyon where the Malibu Creek State Park shows a rusted Jeep and mess tent from the set of the MASH TV show. An interesting tidbit but the main attractions were the web of hiking trails.
As fires continue to engulf the Angeles National Forest in the San Gabriel Mountains north of LA, it saddens me to realize so many thousands of acres of wilderness are being destroyed. Homes can be rebuilt. Nature has a way of bringing vegetation back to life. Sadly, the loss of wildlife can’t be avoided.
Human lives can’t be resurrected. It is no less a tragedy when people die in a wildfire than it is for those who succumb to the devastation caused by a hurricane. Few lives have been lost in the fires surrounding Los Angeles. People heeded the calls to evacuate. So should we if the forces of nature threaten the lives of we Floridians.
Monday, September 7, 2009
Sunday, August 30, 2009
A Stroll Down Wall Street
As if we’re allowed to believe otherwise, Wall Street’s continued surge is all but sure to continue to rise toward a closing bell figure of 10,000. And there are plenty of examples of news to keep those faint of pocketbook from being fearful of losing their skivvies after their pre-recession wealth has already been stripped of their greenbacks.
The second quarter 1% decline in the Gross Domestic Profit was better than expected by one-half a percent point, a vast improvement over data released by the Commerce Department for the previous two quarters that showed declines of 6.4% January-March and 5.4% October-December 2008.
Looking ahead, an anticipated 2% increase in GDP for the period July-September is based on the assumed affects from the $787B stimulus plan and the Cash for Clunkers program. If this fails to materialize, expect to hear the words “market correction” as financial news commentators continue to grin in front of the camera to no one’s joy but for their own paychecks.
A hopeful sign for economic recovery was the announcement that only 247,000 jobs were lost in July, the smallest figure in nearly a year. It could have been worse and may still spike higher on the chart of the unemployed, but the outlook on the Street is a view of a clear road ahead to a higher Dow Jones Industrial Average. Consumer spending declined a mere 1.2% during the same period. Not too dismal, huh?
A positive light in employment figures show that state and local governments have added 110,000 jobs since the recession began, along with their above free market salaries and overly generous benefits. But Jon Shure, deputy director of states’ fiscal policies of the Center on Budget and Policy Priorities, is realistic in saying, “Crunch time is still to come for the states.” What a killjoy!
In May, the savings rate among Americans reached the highest level since 1993 at 6.9%, keeping nearly $770B from circulating through the economy, the highest rate since 1959 when statistics were first gathered. Not only that, in April borrowers slowed down their buying power with a 16.5% decline in credit card purchases, or 16.5B on $1 trillion of total debt. This is no way to spur an economy that thrives on ever-increasing consumer debt.
According to international lender ING Direct, European Union members have cut back on using plastic money by 10-20% while 46% Americans say they have refrained from adding to credit card debt. Meanwhile, with high unemployment, foreclosure figures, tight credit and reduced consumer spending….
The Conference Board, an independent research group, released information last week that the Consumer Confidence Index (CCI) rose from 47.4 in July to 54.1 in August, quite a bit better than the expected 47.9 that had been forecast. Still, the index is well below 90, the minimum level indicative of a healthy economy. There’s a lot of boom to go before the economy is deemed revived.
As a reference, the significance of historical data of the CCI, it stood at 109.4 (August 1996); 82.2 (October 2001, after 9-11); 110.3 (January 2007).
The Expectations Index, taken from the same sampling of 5,000 households and measures a 6-month view on economic conditions, rose from 63.4 in July to 73.5 in August.
On the flipside of consumer view of economic recovery, the Reuters/University of Michigan Consumer Sentiment Survey, also taken of 5,000 participants, decreased from 66.00 to 63.2 from July to August although economists surveyed had expected an increase to 69 so, although the news isn’t good, it’s not as bad as feared, so it’s actually good news. Right?
The benchmark for the Confidence Survey is 1985; the Reuters/UM Sentiment Survey is referenced to 1966 with both having a base figure of 100.
As if to confuse matters, a third sampling of 1,000 participants conducted by telephone, the ABC News Consumer Comfort Survey reflected a rating of –45 (yes, that’s a negative sign on a scale of –100 to +100). Putting this in perspective, the 23-year average is –12. Only 8% rated the economy in a positive light, maintaining a single-digit trend for 43 of the past 46 weeks. By all measures, not very comforting.
And let’s not ignore the 77% decline of funds held by the FDIC from $45.2B a year ago. The current $10.4B balance would be considerably, and alarmingly, less but for the $9.1B in higher deposit fees garnered from banks in the first quarter. Not to worry, your banking account balances are still covered up to $250,000. The FDIC can draw on its no-limit credit line with the Treasury Department as it did in 1993.
Sales of new one-family homes increased 9.6% in July (plus or minus 13.4%) over June figures but 13.4% below July 2008 figures (plus or 12.9%). The plus or minus figures leave a don’t add up to anything but confusion and doubtful significance.
On a truly positive note, August figures show an increase of 4.9% for durable goods over July, and upward swing for three out of the past four months.
Who’s to say our economic future is anything other than what is portrayed by the wooly bullies on Wall Street? Anybody?
The second quarter 1% decline in the Gross Domestic Profit was better than expected by one-half a percent point, a vast improvement over data released by the Commerce Department for the previous two quarters that showed declines of 6.4% January-March and 5.4% October-December 2008.
Looking ahead, an anticipated 2% increase in GDP for the period July-September is based on the assumed affects from the $787B stimulus plan and the Cash for Clunkers program. If this fails to materialize, expect to hear the words “market correction” as financial news commentators continue to grin in front of the camera to no one’s joy but for their own paychecks.
A hopeful sign for economic recovery was the announcement that only 247,000 jobs were lost in July, the smallest figure in nearly a year. It could have been worse and may still spike higher on the chart of the unemployed, but the outlook on the Street is a view of a clear road ahead to a higher Dow Jones Industrial Average. Consumer spending declined a mere 1.2% during the same period. Not too dismal, huh?
A positive light in employment figures show that state and local governments have added 110,000 jobs since the recession began, along with their above free market salaries and overly generous benefits. But Jon Shure, deputy director of states’ fiscal policies of the Center on Budget and Policy Priorities, is realistic in saying, “Crunch time is still to come for the states.” What a killjoy!
In May, the savings rate among Americans reached the highest level since 1993 at 6.9%, keeping nearly $770B from circulating through the economy, the highest rate since 1959 when statistics were first gathered. Not only that, in April borrowers slowed down their buying power with a 16.5% decline in credit card purchases, or 16.5B on $1 trillion of total debt. This is no way to spur an economy that thrives on ever-increasing consumer debt.
According to international lender ING Direct, European Union members have cut back on using plastic money by 10-20% while 46% Americans say they have refrained from adding to credit card debt. Meanwhile, with high unemployment, foreclosure figures, tight credit and reduced consumer spending….
The Conference Board, an independent research group, released information last week that the Consumer Confidence Index (CCI) rose from 47.4 in July to 54.1 in August, quite a bit better than the expected 47.9 that had been forecast. Still, the index is well below 90, the minimum level indicative of a healthy economy. There’s a lot of boom to go before the economy is deemed revived.
As a reference, the significance of historical data of the CCI, it stood at 109.4 (August 1996); 82.2 (October 2001, after 9-11); 110.3 (January 2007).
The Expectations Index, taken from the same sampling of 5,000 households and measures a 6-month view on economic conditions, rose from 63.4 in July to 73.5 in August.
On the flipside of consumer view of economic recovery, the Reuters/University of Michigan Consumer Sentiment Survey, also taken of 5,000 participants, decreased from 66.00 to 63.2 from July to August although economists surveyed had expected an increase to 69 so, although the news isn’t good, it’s not as bad as feared, so it’s actually good news. Right?
The benchmark for the Confidence Survey is 1985; the Reuters/UM Sentiment Survey is referenced to 1966 with both having a base figure of 100.
As if to confuse matters, a third sampling of 1,000 participants conducted by telephone, the ABC News Consumer Comfort Survey reflected a rating of –45 (yes, that’s a negative sign on a scale of –100 to +100). Putting this in perspective, the 23-year average is –12. Only 8% rated the economy in a positive light, maintaining a single-digit trend for 43 of the past 46 weeks. By all measures, not very comforting.
And let’s not ignore the 77% decline of funds held by the FDIC from $45.2B a year ago. The current $10.4B balance would be considerably, and alarmingly, less but for the $9.1B in higher deposit fees garnered from banks in the first quarter. Not to worry, your banking account balances are still covered up to $250,000. The FDIC can draw on its no-limit credit line with the Treasury Department as it did in 1993.
Sales of new one-family homes increased 9.6% in July (plus or minus 13.4%) over June figures but 13.4% below July 2008 figures (plus or 12.9%). The plus or minus figures leave a don’t add up to anything but confusion and doubtful significance.
On a truly positive note, August figures show an increase of 4.9% for durable goods over July, and upward swing for three out of the past four months.
Who’s to say our economic future is anything other than what is portrayed by the wooly bullies on Wall Street? Anybody?
UBS, IRS and Swiss Cheese
Goody! Goody! Relishing in other peoples’ misfortune might seem a little devilish but with the unfolding battle between the U.S. Justice Department and Swiss bank UBS there’s a childish delight in me that wants the wealthy Americans who have gotten away with fraud and tax evasion for decades may get their just deserves.
The chapters that have taken place to identify those sly dogs of greed began in earnest in February when UBS agreed to pay the IRS $780M to avoid criminal charges for making it possible for a select class of Americans to avoid paying taxes on nearly $20B they have tucked away in offshore accounts. The initial 285 names provided by UBS were just the tip of the fraud claims as the U.S. sought to have nearly 52,000 Americans names divulged.
While negotiations were being held between UBS and the Justice Department, the Swiss government had been steadfast in swearing allegiance to hidden account holders, stating they wouldn’t allow the bank to hand over the names because Swiss secrecy laws specifically prohibits client disclosure. Since then, talks have been held to avoid the U.S. from filing suit against the Swiss government and taking the matter to court.
Earlier this year Jeffrey P. Chernick, owner of a New York-based company that represents toy manufacturers in China and Hong Kong, pleaded guilty to a charge of filing a fraudulent tax return in 2007 by concealing more than $8M in reportable income.
John McCarthy, who set up a manufacturing business in Hong Kong in 2003, funneled $1M in Swiss accounts. Both men face up to five years in prison, a $250,000 fine, back taxes, interest and penalties.
The Justice Dept. is clients the opportunity to “turn themselves in” by a Sept. 23 deadline to lessen the criminal charges against them. Penalties will be reduced to a maximum of 20% of their value while those who don’t disclose their assets by the deadline could face penalties of up to 50% of their average account balances held over the past three years. Fines are expected to be in the range of $4B.
The drama that befell Mr. Chernick unfolded when transactions were traced to a former UBS manager who had set up accounts with NZB, a smaller private bank in Zurich, with the belief that by doing so would subject clients to less scrutiny by the IRS. There was a tinge of espionage going on with many of the transactions done with bank officials traveling to the U.S. as tourists rather than consultants.
A Swiss lawyer and a director at NZB, who had worked as a private banker for UBS until 2002, have been indicted for conspiring to defraud the IRS. This will prove to be just the beginning of a long process to prosecute participants of the financial institutions that have taken part in tax evasion not only in the U.S. but many of the 27-country European Union. Italy and Germany have also initiated an amnesty program while the EU has negotiated a 35% tax rate to bank accounts in Swiss Banks.
In an agreement announced this past week, UBS will turn over to the Swiss Federal Tax Administration the names of 4,450 U.S. major accounts suspected of holding undeclared assets, giving the clients an opportunity to appeal to the Swiss courts before their names are released to the IRS, a process that may take years before full disclosure is realized.
The Organization for Economic Co-operation and Development website lists 38 ‘Jurisdictions Committed to Improving Transparency and Establishing Effective Exchange of Information in Tax Matters’. As of August 14 there are no longer any countries on the ‘Uncooperative List” although Costa Rica, Malaysia, the Philippines and Uruguay were recently removed from the list but have yet to pass legislation to achieve that status.
So, according to the OECD, there are longer any tax havens but the International Monetary Fund, Tax Research Org and the U.S. Stop Tax Havens Abuse Act have their own lists as does the Tax Justice Network and taxresearch.org, all of which are in dispute with the OECD claim. In 2005, estimates of offshore tax havens held $11.5 trillion in funds globally. Hit by the worldwide recession, the figure is now approximately $7 trillion socked away.
Still, smaller Swiss banks have been brash in an attempt to assure foreign clients that new strategies are being developed to keep their accounts hidden from future scrutiny. As thousands of account holders are moving huge amounts of funds out of Swiss banks and seeking legal representation from tax consultants.
As the IRS focuses on identifying tax evaders through a program called the Offshore Identification Unit, the names may not be well known but my spiteful joys will nonetheless be forthcoming.
The chapters that have taken place to identify those sly dogs of greed began in earnest in February when UBS agreed to pay the IRS $780M to avoid criminal charges for making it possible for a select class of Americans to avoid paying taxes on nearly $20B they have tucked away in offshore accounts. The initial 285 names provided by UBS were just the tip of the fraud claims as the U.S. sought to have nearly 52,000 Americans names divulged.
While negotiations were being held between UBS and the Justice Department, the Swiss government had been steadfast in swearing allegiance to hidden account holders, stating they wouldn’t allow the bank to hand over the names because Swiss secrecy laws specifically prohibits client disclosure. Since then, talks have been held to avoid the U.S. from filing suit against the Swiss government and taking the matter to court.
Earlier this year Jeffrey P. Chernick, owner of a New York-based company that represents toy manufacturers in China and Hong Kong, pleaded guilty to a charge of filing a fraudulent tax return in 2007 by concealing more than $8M in reportable income.
John McCarthy, who set up a manufacturing business in Hong Kong in 2003, funneled $1M in Swiss accounts. Both men face up to five years in prison, a $250,000 fine, back taxes, interest and penalties.
The Justice Dept. is clients the opportunity to “turn themselves in” by a Sept. 23 deadline to lessen the criminal charges against them. Penalties will be reduced to a maximum of 20% of their value while those who don’t disclose their assets by the deadline could face penalties of up to 50% of their average account balances held over the past three years. Fines are expected to be in the range of $4B.
The drama that befell Mr. Chernick unfolded when transactions were traced to a former UBS manager who had set up accounts with NZB, a smaller private bank in Zurich, with the belief that by doing so would subject clients to less scrutiny by the IRS. There was a tinge of espionage going on with many of the transactions done with bank officials traveling to the U.S. as tourists rather than consultants.
A Swiss lawyer and a director at NZB, who had worked as a private banker for UBS until 2002, have been indicted for conspiring to defraud the IRS. This will prove to be just the beginning of a long process to prosecute participants of the financial institutions that have taken part in tax evasion not only in the U.S. but many of the 27-country European Union. Italy and Germany have also initiated an amnesty program while the EU has negotiated a 35% tax rate to bank accounts in Swiss Banks.
In an agreement announced this past week, UBS will turn over to the Swiss Federal Tax Administration the names of 4,450 U.S. major accounts suspected of holding undeclared assets, giving the clients an opportunity to appeal to the Swiss courts before their names are released to the IRS, a process that may take years before full disclosure is realized.
The Organization for Economic Co-operation and Development website lists 38 ‘Jurisdictions Committed to Improving Transparency and Establishing Effective Exchange of Information in Tax Matters’. As of August 14 there are no longer any countries on the ‘Uncooperative List” although Costa Rica, Malaysia, the Philippines and Uruguay were recently removed from the list but have yet to pass legislation to achieve that status.
So, according to the OECD, there are longer any tax havens but the International Monetary Fund, Tax Research Org and the U.S. Stop Tax Havens Abuse Act have their own lists as does the Tax Justice Network and taxresearch.org, all of which are in dispute with the OECD claim. In 2005, estimates of offshore tax havens held $11.5 trillion in funds globally. Hit by the worldwide recession, the figure is now approximately $7 trillion socked away.
Still, smaller Swiss banks have been brash in an attempt to assure foreign clients that new strategies are being developed to keep their accounts hidden from future scrutiny. As thousands of account holders are moving huge amounts of funds out of Swiss banks and seeking legal representation from tax consultants.
As the IRS focuses on identifying tax evaders through a program called the Offshore Identification Unit, the names may not be well known but my spiteful joys will nonetheless be forthcoming.
A Quote on Health Care Please
The mean and vicious dialogue from those with insurance coverage is so intense that you have to question the compassion of their religious convictions, if there is any. Their perceived selfishness in promoting health care benefits for the uninsured lead me to also question if those with defined benefits have a concern even for friends and relatives without coverage.
What of a parent not yet eligible for Medicare or a grandchild, an adult son or daughter faced with insurmountable expenses? Do those with coverage have the disposition, “Good luck, but you’re on your own.”? Seeking ER care as a last resort may be a final, fatal course of action. Seeking medical attention from a general practitioner requires ‘Full Payment Due At Time of Service”.
Not everyone is fortunate to work for, or retire from, a large corporation that provides company-subsidized health benefits. Unions have successfully fought long and hard for such coverage but people working for small businesses don’t qualify for group rate ‘discounts’.
Although having taken early retirement from the Bell System with a pension that puts me near poverty level, the most important benefit is medical coverage. With modest deductibles and payment of 90% toward doctor and hospital visits, there are still recommended treatments that are ignored because of unknown expenses. I feel fine. Still, I see a family physician occasionally to keep cholesterol and blood pressure levels in check. (When medications brought the levels within normal range, I suggested the medications might not be needed any longer. My ignorance was kindly acknowledged.)
Before a mechanic performs work on a car, the customer is given an estimate and any additional expenses must be authorized by the owner. When dental work needs to be done the costs are reviewed with the patient and provided with a printed predetermination of patient responsibility. A consultation may result in alternative options such as having a tooth removed because the root canal is cost prohibitive.
Generally, quotes on medical procedures aren’t provided unless requested, especially in an emergency room.
A friend was recently involved in an automobile accident. Although not seriously hurt, after four days when neck and back pains developed the family physician sent him to the Brooksville Regional Hospital ER. The charges incurred were in excess of $15K. The automobile medical coverage was $10K. The Coordination of Benefits form submitted to Medicare may pick up the remainder.
It would have been unwise to ignore symptoms that could have proven to be a lifetime problem, but all of the x-rays and scans proved negative. Had the full charges been disclosed he may have opted out of scans of the pelvis and abdomen or declined the Comprehensive Metabolic Panel because he experienced no discomfort whatsoever in these areas.
Those tests alone accounted for over $5,000 in charges. Two x-ray views of the hip came at an additional cost of over $500. The $353.87 fee for the cervical collar is questionable – it was only used momentarily because it caused extreme pain. Perhaps another patient will be charged the same fee for the use of the very same device? I stayed with my friend through the whole ordeal and listened to vague explanations of what tests were being administered but no mention of the whys. It cost $862 just to enter the ER Department.
You have to question if having insurance determines the extent and number of tests that are performed, not for the benefit of the patient but for the monetary gains of the facility.
Of course, the patient is supposed to have faith that a healthcare facility and its doctors and technicians will perform the tests necessary to treat the indicated ailments. In this case, some of the tests were definitely frivolous.
My friend’s experience has greatly affected my view toward seeking emergency room services. Unless totally incapacitated, they won’t like me very much with my mindful concern of both body and pocketbook. The medical profession has the responsibility to promote procedures for the betterment of the patient’s health but it’s also the patient’s right of self-determination to weigh the benefits of any treatment. Without symptoms, what’s the point?
I seldom question the capabilities of doctors and other trained professionals in the medical field, but in the future they may have a hard sell to peddle procedural wherewithal. I doubt a Tony Robbins motivational seminar will help their cause.
Cost containment for the patient’s pocketbook is another important consideration in the healthcare debate. Or is this something else to get nasty about? Oh, yeah, it’s the sharing of healthcare benefits with the uninsured that makes the headlines. That attitude is enough to make some people angry.
What of a parent not yet eligible for Medicare or a grandchild, an adult son or daughter faced with insurmountable expenses? Do those with coverage have the disposition, “Good luck, but you’re on your own.”? Seeking ER care as a last resort may be a final, fatal course of action. Seeking medical attention from a general practitioner requires ‘Full Payment Due At Time of Service”.
Not everyone is fortunate to work for, or retire from, a large corporation that provides company-subsidized health benefits. Unions have successfully fought long and hard for such coverage but people working for small businesses don’t qualify for group rate ‘discounts’.
Although having taken early retirement from the Bell System with a pension that puts me near poverty level, the most important benefit is medical coverage. With modest deductibles and payment of 90% toward doctor and hospital visits, there are still recommended treatments that are ignored because of unknown expenses. I feel fine. Still, I see a family physician occasionally to keep cholesterol and blood pressure levels in check. (When medications brought the levels within normal range, I suggested the medications might not be needed any longer. My ignorance was kindly acknowledged.)
Before a mechanic performs work on a car, the customer is given an estimate and any additional expenses must be authorized by the owner. When dental work needs to be done the costs are reviewed with the patient and provided with a printed predetermination of patient responsibility. A consultation may result in alternative options such as having a tooth removed because the root canal is cost prohibitive.
Generally, quotes on medical procedures aren’t provided unless requested, especially in an emergency room.
A friend was recently involved in an automobile accident. Although not seriously hurt, after four days when neck and back pains developed the family physician sent him to the Brooksville Regional Hospital ER. The charges incurred were in excess of $15K. The automobile medical coverage was $10K. The Coordination of Benefits form submitted to Medicare may pick up the remainder.
It would have been unwise to ignore symptoms that could have proven to be a lifetime problem, but all of the x-rays and scans proved negative. Had the full charges been disclosed he may have opted out of scans of the pelvis and abdomen or declined the Comprehensive Metabolic Panel because he experienced no discomfort whatsoever in these areas.
Those tests alone accounted for over $5,000 in charges. Two x-ray views of the hip came at an additional cost of over $500. The $353.87 fee for the cervical collar is questionable – it was only used momentarily because it caused extreme pain. Perhaps another patient will be charged the same fee for the use of the very same device? I stayed with my friend through the whole ordeal and listened to vague explanations of what tests were being administered but no mention of the whys. It cost $862 just to enter the ER Department.
You have to question if having insurance determines the extent and number of tests that are performed, not for the benefit of the patient but for the monetary gains of the facility.
Of course, the patient is supposed to have faith that a healthcare facility and its doctors and technicians will perform the tests necessary to treat the indicated ailments. In this case, some of the tests were definitely frivolous.
My friend’s experience has greatly affected my view toward seeking emergency room services. Unless totally incapacitated, they won’t like me very much with my mindful concern of both body and pocketbook. The medical profession has the responsibility to promote procedures for the betterment of the patient’s health but it’s also the patient’s right of self-determination to weigh the benefits of any treatment. Without symptoms, what’s the point?
I seldom question the capabilities of doctors and other trained professionals in the medical field, but in the future they may have a hard sell to peddle procedural wherewithal. I doubt a Tony Robbins motivational seminar will help their cause.
Cost containment for the patient’s pocketbook is another important consideration in the healthcare debate. Or is this something else to get nasty about? Oh, yeah, it’s the sharing of healthcare benefits with the uninsured that makes the headlines. That attitude is enough to make some people angry.
Health Care Deformity
Back off, you bugaboos! Take a break. Take in a great big breath. Not only is this a proven method of relaxation but it also provides a good dose of oxygen for a healthier brain, thus a positive prognosis for the all too contentious debate on healthcare reform.
All of the knee-jerk reactions on the debate of providing medical coverage to the uninsured have gotten everybody’s panties in a bunch. The hate factor among all the interested groups won’t resolve the issue to anyone’s satisfaction, except possibly President Obama and a number of die-hard Democrats. Currently, there is no dialogue that will provide a cure-all for what ails uninsured Americans.
For years, the high cost of providing health insurance through employer-based coverage has made American business at a frightful disadvantage for competitive product pricing in the broadening realm of globalization.
Corporate medical contributions to employee benefits come to an annual expense of about $15,000 – for government employees the un-taxed benefits are even more obtuse at $19,000. These costs continue to be a prominent reason for the outsourcing of jobs to foreign lands. We’ve painted the survival of American enterprise into a corner, but there are steps that can be taken to correct this poor state of affairs.
Before providing “universal” coverage, the cost factors of health care must be addressed.
Three years ago Massachusetts enacted the most comprehensive subsidized insurance fee-for-service public offering and cut the rate of uninsured residents from 8% to 2.6%, the lowest in the country. Although an addition 428,000 people were given affordable coverage, it has resulted in an insurmountable budget crisis. The state is on the hook for an additional $595,000 than it was in 2006, a 42% increase.
Enacting universal coverage in Maine in 2005 resulted in a 74% increase in premiums, pricing many of the uninsured out of the market and dropping coverage. The uninsured rate is 10%, the same level as before legislation was passed.
Neither Maine nor Massachusetts bothered to address a means to implement cost-cutting measures of medical pricing. For decades, private insurance companies have maintained what could easily be considered price fixing since in-state health options are generally restricted to two or three major providers.
This lack of competition defies the intent of the free market system. The self-interest of insurance companies, service providers and drug companies is too impressionable on elected officials. The inherent power of lobbyist groups set up by former legislators are too influential on the course of action of Congress. They know the ropes. They have the contacts. The have access to funds for campaign contributions. And they have too tight a grip on the health of Americans.
Rather than accuse Obama of promoting a death forum for the elderly, the feeble and the less-than-productive members of society, put the blame on insurance companies for limiting and denying medical procedures that would otherwise enhance the lives of the unfortunate.
Pharmaceutical companies are major culprits in themselves. When the Medicare Drug Plan was enacted in January 2006, they raked in an additional $8B in profits in the first six months alone. The industry has promised an $80B sacrifice over a ten-year period as a buy-in to healthcare reform, a minor contribution toward the health of the country considering their huge profit margins.
The U.S. has the most profitable pharmaceutical business in the world with revenues of $315B in 2007. As a comparison, the illegal drug industry has profits of approximately $300B in revenue per year, globally speaking.
What could be considered an unethical tactic of pharmaceutical companies is the “pay-for-delay” scheme that keeps generic drugs off the market by providing attractive monetary incentives to maintain an extended monopoly over less expensive drug manufacturers. The FTC estimates Americans are cheated out of about $3.5B per year. Then there’s the practice of putting “name brand” generic versions on the market for drugs whose patents have expired, affectively making it unprofitable for true generic companies to offer competitive pricing for an additional six months
Pharmaceutical companies and insurance companies are keeping Red Bull Republicans and Blue Dog Democrats at bay, caged in dollar signs of influence.
It’s understandable that Americans are leery of healthcare reform. Obama claims his efforts will be deficit neutral. Even if an attainable goal, through higher premiums, increased deductibles and restricted coverage, a redistribution of health wealth will help some but will come at a great cost to the currently insured. Town Hall Brawls are not the answer.
Containing costs in all aspects of providing ‘universal medical coverage’ must be addressed before continued debate gets out of hand and people’s health conditions deteriorate. Is this an orchestrated script by insurers and providers to further increase profits? Depending on whether or not you have health insurance, you can bet your life or death on it.
All of the knee-jerk reactions on the debate of providing medical coverage to the uninsured have gotten everybody’s panties in a bunch. The hate factor among all the interested groups won’t resolve the issue to anyone’s satisfaction, except possibly President Obama and a number of die-hard Democrats. Currently, there is no dialogue that will provide a cure-all for what ails uninsured Americans.
For years, the high cost of providing health insurance through employer-based coverage has made American business at a frightful disadvantage for competitive product pricing in the broadening realm of globalization.
Corporate medical contributions to employee benefits come to an annual expense of about $15,000 – for government employees the un-taxed benefits are even more obtuse at $19,000. These costs continue to be a prominent reason for the outsourcing of jobs to foreign lands. We’ve painted the survival of American enterprise into a corner, but there are steps that can be taken to correct this poor state of affairs.
Before providing “universal” coverage, the cost factors of health care must be addressed.
Three years ago Massachusetts enacted the most comprehensive subsidized insurance fee-for-service public offering and cut the rate of uninsured residents from 8% to 2.6%, the lowest in the country. Although an addition 428,000 people were given affordable coverage, it has resulted in an insurmountable budget crisis. The state is on the hook for an additional $595,000 than it was in 2006, a 42% increase.
Enacting universal coverage in Maine in 2005 resulted in a 74% increase in premiums, pricing many of the uninsured out of the market and dropping coverage. The uninsured rate is 10%, the same level as before legislation was passed.
Neither Maine nor Massachusetts bothered to address a means to implement cost-cutting measures of medical pricing. For decades, private insurance companies have maintained what could easily be considered price fixing since in-state health options are generally restricted to two or three major providers.
This lack of competition defies the intent of the free market system. The self-interest of insurance companies, service providers and drug companies is too impressionable on elected officials. The inherent power of lobbyist groups set up by former legislators are too influential on the course of action of Congress. They know the ropes. They have the contacts. The have access to funds for campaign contributions. And they have too tight a grip on the health of Americans.
Rather than accuse Obama of promoting a death forum for the elderly, the feeble and the less-than-productive members of society, put the blame on insurance companies for limiting and denying medical procedures that would otherwise enhance the lives of the unfortunate.
Pharmaceutical companies are major culprits in themselves. When the Medicare Drug Plan was enacted in January 2006, they raked in an additional $8B in profits in the first six months alone. The industry has promised an $80B sacrifice over a ten-year period as a buy-in to healthcare reform, a minor contribution toward the health of the country considering their huge profit margins.
The U.S. has the most profitable pharmaceutical business in the world with revenues of $315B in 2007. As a comparison, the illegal drug industry has profits of approximately $300B in revenue per year, globally speaking.
What could be considered an unethical tactic of pharmaceutical companies is the “pay-for-delay” scheme that keeps generic drugs off the market by providing attractive monetary incentives to maintain an extended monopoly over less expensive drug manufacturers. The FTC estimates Americans are cheated out of about $3.5B per year. Then there’s the practice of putting “name brand” generic versions on the market for drugs whose patents have expired, affectively making it unprofitable for true generic companies to offer competitive pricing for an additional six months
Pharmaceutical companies and insurance companies are keeping Red Bull Republicans and Blue Dog Democrats at bay, caged in dollar signs of influence.
It’s understandable that Americans are leery of healthcare reform. Obama claims his efforts will be deficit neutral. Even if an attainable goal, through higher premiums, increased deductibles and restricted coverage, a redistribution of health wealth will help some but will come at a great cost to the currently insured. Town Hall Brawls are not the answer.
Containing costs in all aspects of providing ‘universal medical coverage’ must be addressed before continued debate gets out of hand and people’s health conditions deteriorate. Is this an orchestrated script by insurers and providers to further increase profits? Depending on whether or not you have health insurance, you can bet your life or death on it.
Ben Barnanke, A Has Been?
Politics aside, or not, Ben Barnanke, Chairman of the Federal Reserve, is on a campaign trail to reassure investors that his monetary policies of the past, present and future have and will continue to guide us out of the recession. His messages aren’t meant to save the economy, but to save his job when his four-year term comes up for re-selection in January.
He’s faced Congress to substantiate, or defend, his worthiness. His words have appeared on editorial pages in newspapers across the nation. He’s done TV interviews on ‘60 Minutes’ and ‘The News Hour with Jim Lehrer’.
During his confirmation hearings in 2006, Bernanke espoused his views on economic theory and policy, stressing the importance of communication and transparency. But he also said the final say on government debt and deficits lie with the President and Congress.
Having written numerous books and articles, he frequently focused on limiting inflation to no more than 2% over any given two-year period. For now, there appears little concern. As a matter of fact, many economists feel the risk of deflation is more worrisome. Deflation occurs when consumers hold off buying big-ticket items with the belief that during an economic downturn prices will continue to fall. The result is lower demand so job losses increase, employers then curtail investments because demand is low resulting in higher unemployment, foreclosures and bankruptcies.
Synopsis: no spending = no demand = no need to increase supply = fewer jobs, and so forth. The spiral ends when inflation appears.
Other economists are fearful that actions taken to fight deflation in the long term will result in runaway inflation. This would be the beast that puts the economy at risk for many years to come. A couple of indicators suggest we’re on our way. In January the 30-year fixed mortgage rate climbed from 4.96% to 5.12% within a week’s time. It stabilized in May just below 5.0% but it as of July 29 it stood at 5.56% per Bankrate’s weekly survey. This is a vast improvement from 6.77% a year ago, bringing down monthly payments by $158 on a $200,000 mortgage, but it may turn out to be short-term relief.
The Fed is printing more and more stimulus money, which means increased government borrowing, resulting in an ever-growing portion of tax dollars being paid toward interest. This could mean more printing of money and an increase in debt. Another stimulus package would exacerbate the situation.
Since Sept. 2007 the Fed interest rate has been cut nine times from 5.25% to near zero in Dec 2008, significantly adding to the prospects of deflation. There’s nowhere to go but up, which will certainly bring down the stock market.
To worsen matters, this past week China, which holds an estimated $1.5 trillion in Treasury securities, sought a guarantee that the U.S. will cut its debt. Timothy Geithner gave his assurance that, as economic recovery strengthens, debt reduction will follow. As consumer confidence continues to wane, the prospects are anything but positive.
Alan Greenspan, whose actions are said to have been a large contributor to the current recession, admitted he “made a mistake” in opposing regulation of derivatives and acknowledged that financial institutions didn't protect shareholder investments as had been expected. He said that he and other economists are in “a state of shocked disbelief”… “that regulation in the banking industry led to meltdown of U.S. credit markets”.
Greenspan was supportive of sub-prime lending practices that led to the housing bubble. He was also at the helm of the Fed when the dot-com bubble burst.
And yet he says the Fed was blameless for the housing bubble that began in 2006. It’s a little hard to accept since he was Chairman for 18 years, going back to his appointment in 1988 by President Reagan up until the appointment of Bernanke in 2006, at which time the President Bush said, “Ben Bernanke is the right man to build on the record Alan Greenspan has established." This should have rung a few bells that the economy would continue to sputter, falter and come to a near standstill.
Where does that leave Bernanke? With President Obama’s tendency to recycle past Democrat influences, odds are that he’ll appoint Director of the National Economic Council Larry Summers. This is the same guy that, as Treasury Secretary during the Clinton administration, had supported the 1999 Gramm-Leach-Bliley Act. This bill repealed the 1933 Glass-Steagal Act, which had taken actions to correct the conflicts of interest and fraud in banking institutions that had allowed them to own other financial companies. See where we are now? There’s plenty of blame from every which way you choose.
There’s an excellent possibility that Barnanke’s campaign scheme to keep his job as Fed Chairman will be for naught. Ben may become a has-been.
He’s faced Congress to substantiate, or defend, his worthiness. His words have appeared on editorial pages in newspapers across the nation. He’s done TV interviews on ‘60 Minutes’ and ‘The News Hour with Jim Lehrer’.
During his confirmation hearings in 2006, Bernanke espoused his views on economic theory and policy, stressing the importance of communication and transparency. But he also said the final say on government debt and deficits lie with the President and Congress.
Having written numerous books and articles, he frequently focused on limiting inflation to no more than 2% over any given two-year period. For now, there appears little concern. As a matter of fact, many economists feel the risk of deflation is more worrisome. Deflation occurs when consumers hold off buying big-ticket items with the belief that during an economic downturn prices will continue to fall. The result is lower demand so job losses increase, employers then curtail investments because demand is low resulting in higher unemployment, foreclosures and bankruptcies.
Synopsis: no spending = no demand = no need to increase supply = fewer jobs, and so forth. The spiral ends when inflation appears.
Other economists are fearful that actions taken to fight deflation in the long term will result in runaway inflation. This would be the beast that puts the economy at risk for many years to come. A couple of indicators suggest we’re on our way. In January the 30-year fixed mortgage rate climbed from 4.96% to 5.12% within a week’s time. It stabilized in May just below 5.0% but it as of July 29 it stood at 5.56% per Bankrate’s weekly survey. This is a vast improvement from 6.77% a year ago, bringing down monthly payments by $158 on a $200,000 mortgage, but it may turn out to be short-term relief.
The Fed is printing more and more stimulus money, which means increased government borrowing, resulting in an ever-growing portion of tax dollars being paid toward interest. This could mean more printing of money and an increase in debt. Another stimulus package would exacerbate the situation.
Since Sept. 2007 the Fed interest rate has been cut nine times from 5.25% to near zero in Dec 2008, significantly adding to the prospects of deflation. There’s nowhere to go but up, which will certainly bring down the stock market.
To worsen matters, this past week China, which holds an estimated $1.5 trillion in Treasury securities, sought a guarantee that the U.S. will cut its debt. Timothy Geithner gave his assurance that, as economic recovery strengthens, debt reduction will follow. As consumer confidence continues to wane, the prospects are anything but positive.
Alan Greenspan, whose actions are said to have been a large contributor to the current recession, admitted he “made a mistake” in opposing regulation of derivatives and acknowledged that financial institutions didn't protect shareholder investments as had been expected. He said that he and other economists are in “a state of shocked disbelief”… “that regulation in the banking industry led to meltdown of U.S. credit markets”.
Greenspan was supportive of sub-prime lending practices that led to the housing bubble. He was also at the helm of the Fed when the dot-com bubble burst.
And yet he says the Fed was blameless for the housing bubble that began in 2006. It’s a little hard to accept since he was Chairman for 18 years, going back to his appointment in 1988 by President Reagan up until the appointment of Bernanke in 2006, at which time the President Bush said, “Ben Bernanke is the right man to build on the record Alan Greenspan has established." This should have rung a few bells that the economy would continue to sputter, falter and come to a near standstill.
Where does that leave Bernanke? With President Obama’s tendency to recycle past Democrat influences, odds are that he’ll appoint Director of the National Economic Council Larry Summers. This is the same guy that, as Treasury Secretary during the Clinton administration, had supported the 1999 Gramm-Leach-Bliley Act. This bill repealed the 1933 Glass-Steagal Act, which had taken actions to correct the conflicts of interest and fraud in banking institutions that had allowed them to own other financial companies. See where we are now? There’s plenty of blame from every which way you choose.
There’s an excellent possibility that Barnanke’s campaign scheme to keep his job as Fed Chairman will be for naught. Ben may become a has-been.
Making A Heroic Correction
In response to last Sunday’s ‘Where have all the heroes gone?’ there were a fair number of email and on-line reader comments that were as valid as the stamp of a Notary Public. I gladly accept criticism for not everyone has the same views as myself. In this instance, my errors warrant a recant as others deserve recognition for their exceptional critiques.
As delivered by email from Mr. Vlasto, a point of inaccuracy in the ‘heroes’ column claimed President Dwight Eisenhower had received the Congressional Medal of Honor. In actuality General Eisenhower had refused the Medal as he felt it should be reserved for servicemen and women for bravery and valor. As if his wartime contributions were anything but!
Of the other comments, a most deserving on-line remark from ‘stopthespending’ put into question my reference to the ineffectiveness of the troop surge under the command of General David Patraeus. The writer emphasized the General’s worthy attributes that make him “a hero and deserves a Medal of Honor he secured Iraq and is a great man”. The writer made me pause again with a final statement, “I could name many more but why should I you only disagree.” I bow my head, partly in shame but also in respectful appreciation for the sacrifices and loss of lives of so many soldiers who have been steadfast in honoring the American Flag so that we may all live safe and free from harm in a world too dangerous for us soft-shoed citizens to truly comprehend.
Two other emails were unexpected with each providing a phone number as an offering for a moment of discussion.
The first was in agreement America’s working men and women are, or should be recognized as, the real heroes who can bring America around from these days of near economic ruin. The gentleman posed the question, “I wonder what the government is doing to set them up for success?” He answered, “Not much.”
He also made a correction that he “did not take on Dave Patraeus.” I immediately checked it out through my fairly trusted search mechanism, Google, and realized I had indeed made a grievous error that made me the goof. He, and the other 20 Generals I identified in the column, had actually chastised then-Secretary of Defense Donald Rumsfeld and the failed strategy of the Bush Administration in Iraq.
When I called the gentleman I was taken aback that he answered simply, “John Batiste.” I couldn’t possibly address him but with the respectful title of “General Batiste, this is Ron Rae…” with a reference to the column on heroes. When I expressed regret on my reference to General Patraeus, he kindly brushed it off.
From there the exchange of words were conversational. As a civilian and President of Klein Steel, Inc., he has seen a major turnaround in business since the first of the year. I made mention of a 30 second spot he had made on behalf of VoteVets with the theme that “Mr. President, you did not listen”. It was because of the Commander-in-Chief’s policies that led General Batiste, and others, to protest with early retirement.
The General no longer associates himself with VoteVets, which ‘Aims to put Iraq and Afghanistan veterans in Congress who are critical of the execution of the war in Iraq’, because it has become too centered on politics. Mr. Batiste, I mean General Batiste, is not a political pundit in the slightest.
The other email was from Retired Major General Paul D. Eaton who was justifiably critical of my “misrepresenting” his views and strongly suggested that “not critiquing” him further should be my only action. Not only was there a reference to the aforementioned error in regards to comments about General Patraeus, but General Eaton also informed me that he has been objectionable of Chairman of the Joint Chiefs of Staff General Peter Pace for having said that “this country is exceptionally well served “ by Donald Rumsfeld. Vice Chairman General Richard B. Meyers was also criticized for what I might say has been a misbegotten game of ‘follow the leader’. I needn’t say more out of respect for what was truly an unforgivable misrepresentation of General Eaton.
I stand corrected as I stand in salute for the sacrifices of each and every American hero who has defended these great United States of America from not only branded enemies of the past but also today’s enemies wear no uniform but have a uniform goal of terrorizing those with opposing ideologies, including innocent civilian bystanders.
As delivered by email from Mr. Vlasto, a point of inaccuracy in the ‘heroes’ column claimed President Dwight Eisenhower had received the Congressional Medal of Honor. In actuality General Eisenhower had refused the Medal as he felt it should be reserved for servicemen and women for bravery and valor. As if his wartime contributions were anything but!
Of the other comments, a most deserving on-line remark from ‘stopthespending’ put into question my reference to the ineffectiveness of the troop surge under the command of General David Patraeus. The writer emphasized the General’s worthy attributes that make him “a hero and deserves a Medal of Honor he secured Iraq and is a great man”. The writer made me pause again with a final statement, “I could name many more but why should I you only disagree.” I bow my head, partly in shame but also in respectful appreciation for the sacrifices and loss of lives of so many soldiers who have been steadfast in honoring the American Flag so that we may all live safe and free from harm in a world too dangerous for us soft-shoed citizens to truly comprehend.
Two other emails were unexpected with each providing a phone number as an offering for a moment of discussion.
The first was in agreement America’s working men and women are, or should be recognized as, the real heroes who can bring America around from these days of near economic ruin. The gentleman posed the question, “I wonder what the government is doing to set them up for success?” He answered, “Not much.”
He also made a correction that he “did not take on Dave Patraeus.” I immediately checked it out through my fairly trusted search mechanism, Google, and realized I had indeed made a grievous error that made me the goof. He, and the other 20 Generals I identified in the column, had actually chastised then-Secretary of Defense Donald Rumsfeld and the failed strategy of the Bush Administration in Iraq.
When I called the gentleman I was taken aback that he answered simply, “John Batiste.” I couldn’t possibly address him but with the respectful title of “General Batiste, this is Ron Rae…” with a reference to the column on heroes. When I expressed regret on my reference to General Patraeus, he kindly brushed it off.
From there the exchange of words were conversational. As a civilian and President of Klein Steel, Inc., he has seen a major turnaround in business since the first of the year. I made mention of a 30 second spot he had made on behalf of VoteVets with the theme that “Mr. President, you did not listen”. It was because of the Commander-in-Chief’s policies that led General Batiste, and others, to protest with early retirement.
The General no longer associates himself with VoteVets, which ‘Aims to put Iraq and Afghanistan veterans in Congress who are critical of the execution of the war in Iraq’, because it has become too centered on politics. Mr. Batiste, I mean General Batiste, is not a political pundit in the slightest.
The other email was from Retired Major General Paul D. Eaton who was justifiably critical of my “misrepresenting” his views and strongly suggested that “not critiquing” him further should be my only action. Not only was there a reference to the aforementioned error in regards to comments about General Patraeus, but General Eaton also informed me that he has been objectionable of Chairman of the Joint Chiefs of Staff General Peter Pace for having said that “this country is exceptionally well served “ by Donald Rumsfeld. Vice Chairman General Richard B. Meyers was also criticized for what I might say has been a misbegotten game of ‘follow the leader’. I needn’t say more out of respect for what was truly an unforgivable misrepresentation of General Eaton.
I stand corrected as I stand in salute for the sacrifices of each and every American hero who has defended these great United States of America from not only branded enemies of the past but also today’s enemies wear no uniform but have a uniform goal of terrorizing those with opposing ideologies, including innocent civilian bystanders.
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