Just released by the New York Times. Click on the below link for the full story.
The Senate Panel Rejects a Public Option in the Health Plan
WASHINGTON — After a half-day of animated debate, the Senate Finance Committee on Tuesday rejected efforts by liberal Democrats to add a government-run health insurance plan to major health care legislation, dealing the first official setback to an idea that many Democrats, including President Obama, say they support.
All of the other versions of the health care legislation advancing in Congress — a bill approved by the Senate health committee and a trio of bills in the House — include some version of the government-run plan, or public option.
But the Finance Committee chairman, Senator Max Baucus, Democrat of Montana, long ago removed it from his proposal because of stiff opposition from Republicans who call the public plan a step toward “socialized medicine.”
The committee on Tuesday afternoon voted, 15 to 8, to reject an amendment proposed by Senator John D. Rockefeller IV, Democrat of West Virginia, to add a public option called the Community Choice Health Plan, an outcome that underscored the lack of support for a government plan among many Democrats.
Crude Slides on Oil Surplus Fears
NEW YORK – Crude-oil futures fell Tuesday with the approach of weekly oil and fuel inventory data that are expected to show extra supplies continuing to build up.
Light, sweet crude for November delivery recently traded 81 cents, or 1.2%, lower at $66.03 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 69 cents, or 1.1%, lower at $64.85 a barrel.
Dollar Advances to Two-Week High on Russia’s Treasury Holdings
Sept. 29 (Bloomberg) — The dollar rose to a two-week high versus the euro as Russia said it will maintain the share of U.S. Treasuries in its international currency reserves, reducing concern central banks will diversify away from the greenback.
Sterling gained the most versus the euro since June as a report showed the economy shrank less than previously estimated and an index of U.K. retail sales rose to the highest level in five months. The yen slid against the dollar after Japan’s finance minister said the government may take action in markets to curb gains that are hurting exports.
Delinquencies Rise Further In Freddie’s Shrinking Portfolio
Fannie Mae (FNM) said Tuesday that delinquencies in its mortgage portfolio continued to rise, putting further pressure on the mortgage financier.
It and smaller sibling Freddie Mac (FRE) were put into conservatorship a year ago by the federal government amid fears of mounting losses.
Fannie said July serious delinquencies, or those at least 90 days behind, rose to 4.17% from 3.94% in June and 1.45% a year earlier. Fannie’s delinquencies have been worse than Freddie’s.
FDIC meets again to tackle funding needs
NEW YORK (MarketWatch) – Federal bank regulators on Tuesday will again tackle the thorny issue of how to fund ongoing responsibility to insured depositors at a backlog of failing banks.
The Federal Deposit Insurance Corp will consider several options at its meeting in an attempt to figure out how to raise enough money to keep depositors to failed institutions whole.
INTERNATIONAL NEWS
Iran Test Fires Most Advanced Missiles
Iran reported Monday that it successfully test-fired its most advanced and powerful medium-range missiles as part of war games it said were intended to deter the country’s enemies.
Toll Hits 100 in Philippine Flooding
MANILA — The death toll from a storm that ravaged the Philippines over the weekend reached at least 100 on Monday, with many more deaths expected and thousands of Filipinos still trapped in their homes by floodwaters.
NATIONAL DEFENSE
New NATO Chief Says America’s Allies Stand Firm Against Taliban
In his first major speech in the United States, the new head of NATO is expected to respond Monday, to President Obama’s concerns that the United States is doing the lion’s share of the fighting in Afghanistan. In prepared remarks, Anders Fogh Rasmussen acknowledges more resources are needed to fight the battle against the Taliban. However, he is expected ask the United States to stop downplaying efforts by America’s allies.
BUSINESS
STOCKS NEWS US-M&A activity lifts index futures
U.S. stock index futures rose on Monday, following three days of losses, as merger and acquisition activity and the last days of the third quarter encouraged investors.
HEALTH
Health ‘Reform’ Is Income Redistribution
While many Americans are upset by ObamaCare’s $1 trillion price tag, Congress is contemplating other changes with little analysis or debate. These changes would create a massively unfair form of income redistribution and create incentives for many not to buy health insurance at all.
Joining us for a new season of McCuistion TV, host Dennis McCuistion is joined by:
- Steve Forbes – President and CEO of Forbes Magazine and author of Power, Ambition, Glory: The Stunning Parallels between Great Leaders of the Ancient World and Today . . . and the Lessons You Can Learn
- Thomas E. Woods, JR., PhD – Senior Fellow at Ludwig von Mises Institute and author of Meltdown
During this conversation centering around the financial crisis, Thomas Woods asserts that people are tired of conventional wisdom. Guest, Steve Forbes believes most of the present problem in the breakdown of the free market economic system was caused by huge government errors. Forbes contends that the Federal Reserve printed too much money and made it artificially cheap. In addition lenders such as Fannie Mae and Freddie Mac underwrote too many junk mortgages.
“If private business makes a mistake they pay for it, if government does, we all do. Wall Street underwrote and securitized, but government distorts the free market.”
Thomas Woods touches on his new book, Meltdown, and the reason he pushed hard to have the book released early. He believes having a free market perspective on the credit crunch is essential for people to understand what has truly happened. He says, “the government and the Federal Reserve’s fingerprints are all over this situation.”
Dennis addresses the Fred Foldvary prediction of a real estate depression in 2008.
They conclude with comments on the speculation in real estate, the magnificent money creation machine government made and how this was an artificial stimulus to speculation.
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1801 – 09.27.09
Podcast: Play in new window | Download
Leaders Warn Iran Over Nuclear Site
President Obama and leaders of Britain and France accused Iran on Friday of building a secret underground plant to manufacture nuclear fuel, saying the country has hidden the covert operation from international weapons inspectors for years.
“The level of deception by the Iranian government, and the scale of what we believe is the breach of international commitments, will shock and anger the entire international community,” British Prime Minister Gordon Brown said, standing on the other side of Mr. Obama. “The international community has no choice today but to draw a line in the sand.”
G20 leaders debate economic future
Leaders at the G20 summit in Pittsburgh have been debating the safest way to steer the world’s economies.
With many major economies beginning to climb out of recession, attention at the G20 will turn to when and how to withdraw government stimulus packages.
AIDS vaccine promising; experts urge caution
As Bay Area scientists celebrated the first promising results from the largest-ever AIDS vaccine trial, they cautioned that much more research is needed before a vaccine could be available to the public.
The news that an experimental AIDS vaccine tested on 16,000 heterosexual volunteers in Thailand had been shown to be safe and modestly effective surprised researchers, who had become used to failure in the decades-long effort to find a vaccine to protect against HIV infection.
Follow these links for the complete articles.
FINANCE / ECONOMY
Dollar Trades at Year Low Versus Euro on Risk Demand Before Fed
Sept. 23 (Bloomberg) — The dollar traded within a cent of a one-year low against the euro on speculation the global economic recovery encouraged investors to buy higher-yielding assets before the Federal Reserve’s policy meeting today….
“The dollar is likely to remain weak in the near term,” said Lee Hardman, a currency strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. “What’s driving the dollar lower is the exceptionally loose liquidity conditions, and this encourages its use as a funding currency.”
U.S. Stocks Fluctuate as Falling Commodities Offset Fed Bets
Sept. 23 (Bloomberg) — U.S. stocks fluctuated as declines in commodities tempered speculation the Federal Reserve will signal the economy is strengthening. The dollar traded at a one- year low against the euro, while oil, gold and copper retreated.
“There’s concern we’ve moved too far, too fast without any meaningful correction,” said Malcolm Polley, chief investment officer at Stewart Capital Advisors in Indiana, Pennsylvania, which manages $1 billion. “I do think any correction will be muted because the latest figures point to modest economic recovery. But we still need to see top-line corporate growth.”
DEFENSE
Strategy Shift for Afghanistan?
A senior administration official tells Fox that President Obama and his national security team began fresh analysis of the Afghanistan strategy on Sept. 13 in the White House situation room as part of an on-going review of war policy.
“There’s this idea that there’s a change of strategy looming,but there are difficult questions to ask as we continue to review this,” the official said.
“There are developments on the ground that we have had to look at and the election has raised some issue in regards to our efforts to increase good governance. We constantly reassess what is happening and challenge previous assumptions.”
ENVIRONMENT
China pledges climate change action
The Chinese President, Hu Jintao has announced his intention to achieve a significant reduction in the growth of his country’s C02 emissions over the next decade.
Report: More troops needed for Afghan war success
“WASHINGTON — The top U.S. and NATO commander in Afghanistan has reported to President Barack Obama that without more troops the U.S. risks failure in a war it’s been waging since September 2001.
“Resources will not win this war, but under-resourcing could lose it,” Gen. Stanley McChrystal wrote in a five-page Commander’s Summary. His 66-page report, sent to Defense Secretary Robert Gates on Aug. 30, is now under review by Obama.”
“NEW YORK — The dollar is stronger Monday as the yen and higher-yielding currencies give back some of their recent gains versus the greenback while investors consolidate their positions.
With markets in Japan, Singapore and several other Asian countries closed Monday for holidays, the dollar took advantage of thin conditions to push to an almost two-week high against the yen, although remaining in range.”
“NEW YORK – Crude futures fell Monday as the market’s two biggest cues in recent months, the dollar and equities, both pointed to sharply lower oil prices.
Light, sweet crude for October delivery recently traded $2.63, or 3.7%, lower at $69.41 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $2.85, or 4%, lower at $68.47 a barrel.
The dollar stretched a correction into a second day after hitting its weakest point against the euro this year on Thursday, raising the relative cost of commodities priced in the U.S. currency. Oil prices came close to a 2009 high as the dollar weakened steadily earlier this month.”
Obama to focus on innovation in New York speech
“WASHINGTON (Reuters) – President Barack Obama travels to New York on Monday to promote his strategy to improve the U.S. economy by spending on education and innovation, as he shifts his focus from healthcare reform to a week of diplomacy and international economic issues.
Obama will talk about his strategy, building on more than $100 billion in economic stimulus funds, as well as regulatory and other initiatives, in a speech at Hudson Valley Community College in Troy, a city in eastern New York 140 miles north of New York City, the White House said in a statement.”
Here are a few links to check out in order to keep you up-to-date on what is going on in our world.
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Iran and Nuclear Weapons: “Ahmadinejad says he won’t rule out an Iran nuclear bomb”
“In a rare interview with Western media, Iranian President Mahmoud Ahmadinejad said that Iran has no need for nuclear weapons, but he did not rule out the possibility that Iran might develop them in the future. The broadcasting of Mr. Ahmadinejad’s remarks coincided with a new report, based on previously undisclosed information, that the United Nations’ nuclear watchdog has withheld evidence about how close Iran is to making a nuclear bomb.”
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United States and Russia on Missile Defense Systems: “NATO hits the ‘reset’ button, belatedly”
“NATO proposed a new era of cooperation with the United States and Russia on Friday, calling for joint work on missile defense systems after Washington scrapped a planned anti-missile system.”
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Texas Second in Nation on Student Loan Defaults
“The slumping economy led Texas to finish second in the nation for the rate of federal student loan defaults at 9.3 percent.”
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Baucus Health Care Reform Bill Drops
“After months of compromising with seemingly nobody, Senator Max Baucus has released the initial draft of the Senate Finance Committee reform bill and has done so without the support of so much as one GOP member of the committee.”
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Photo Credit: Merck Group
In an effort to continue the discussion on health care, while still refraining from bias, today’s post is meant to present to you the other side of the issue.
What are those that are opposed to the points of Obama’s health plan saying?
All points have not been addressed as the controversial nature of the discussion is continually evolving. However, the goal of this post is to give you another snap shot of some of the things that the opposing side is saying, so that when you are engaging in discussions and presenting your opinion, you have information to back your stance, whichever side you may choose.
According to the September 15, 2009 Rasmussen Presidential Tracking Poll, Obama’s ratings after his health care plan speech reflected that 42% support the plan, where 55% are opposed to the plan, an increase in opposition from the 53% last week. According to the same report,
“Following the speech last Wednesday night intended to relaunch the health care initiative, support for the president’s effort bounced as high as 51%. But the new numbers suggest that support for health care reform is now about the same as it was in August.”
With the promises of the plan that were outlined in yesterday’s post, “Obama’s Health Care Plan: Snap Shot of the Points of President Obama’s Speech,” there are concerns that are being raised by those on the other side. Today we will focus on some of the specific concerns where we’ll be linking back and quoting several sources.
Issue 1: The Exchange
President Obama’s health care plan includes a type of government insurance plan or a co-op (the Exchange) that will make it more financially feasible for businesses and individuals to purchase insurance. The concern that is raised from those that oppose this plan is that it would eventually drive private insurers from the market, thus offering fewer insurance options.
Public opinion polls suggest that many consumers would like to have the choice of a public plan. But insurance companies and Republican lawmakers say a public plan could drive private insurers out of business and lead eventually to a single-payer system run by the government….Republicans and business groups attacked the bill, which they said cost too much and would discourage small businesses from hiring (New York Times).
Issue 2: Freedom to choose your own insurance plan.
According to CNNMoney.com, with the way the plan is structured the government will dictate the minimum list of benefits.
“Today, many states require these ‘standard benefits packages’ — and they’re a major cause for the rise in health-care costs.
The bills would allow the Department of Health and Human Services to add to the list of required benefits, based on recommendations from a committee of experts. Americans, therefore, wouldn’t even know what’s in their plans and what they’re required to pay for, directly or indirectly, until after the bills become law.”
Issue 3: Consumer driven market in jeopardy.
No longer will the healthy be rewarded for healthy lifestyles and no longer will bargain accounts, such as Health Savings Accounts (HSA) be what they are today. Instead all patients will pay the same rates no matter their particular health condition or age. Thus, those that are younger and typically have lower incomes, will be paying significantly more for their health costs than they actually use, where those that are older and can afford to pay more will not have to pay any more for their health costs, when they are utilizing more services.
The concern is that the market is driven by the consumer. The argument the opposing side presents is:
The bills threaten to eliminate the one part of the market truly driven by consumers spending their own money. That’s what makes a market, and health care needs more of it, not less.
Issue 4: Pre-existing conditions claims are not straight-forward.
According to a Fox News article, there are disclaimers within the bill that denote that the pre-existing conditions claims come with contingencies. For the specific sections it references, visit the full article on pre-existing conditions. The two portions this article expounds on are:
“Policy writers for the government will be allowed to make the insurance you buy cover certain ailments, and not cover others (one of which may be a condition you happen to have, which is pre-existing)…
Policy writers for the government will be allowed to limit the amount, level, extent, or nature of the treatment you get for certain ailments (one of which may be your pre-existing condition).
So who will be writing your insurance policy? According to the President’s plan, a new bureaucracy known as the ‘Health Benefits Advisory Committee.’ It will be made up of 27 people…”
Issue 5: Over ten years the health premium revenue will garner $1 trillion dollars.
“Industry representatives counter that, even if insurers take in more money than they pay out, profit margins are so thin that additional taxes and fees would wind up being passed on to policyholders.
Yet another late complication, according to several Democrats, is the president’s statement that he will not sign a bill ‘if it adds one dime to the deficit, now or in the future, period. And to prove that I’m serious, there will be a provision in this plan that requires us to come forward with more spending cuts if the savings we promised don’t materialize.’
The $900 billion target is ‘very difficult,’ Rep. Charlie Rangel, D-N.Y., chairman of the House Ways and Means Committee, told reporters. ‘This is reducing coverage for poor and working people.’”
In Closing
These quoted items are simply the statements presented by the opposing side. The health care plan is still under revisions and even today the chairman of the Senate Finance Committee, Senator Max Baucus released his $856 billion health care plan. As always your comments are welcome and any links or additional information you’d like to share is encouraged.
As always, we’re talking about things that matter… with people who care.
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Photo Credit: The Daily Contributor
Health care reform is the hot topic right now as the Obama Administration has begun an aggressive push toward reform. In an effort to keep you informed on the simple, straightforward facts, this initial post on health care pulls key points from President Obama’s speech and condenses the information for a quick, unbiased overview of the intentions of Obama’s Health Care Plan.
This is intended to be a discussion, so please also leave your comments and any links to additional information that you feel will benefit all readers in the pursuit of fully understanding the issues at hand.
President Obama’s Speech on Health Care
During President Obama’s speech he outlined the specifics of the health care plan. He addressed some of the controversies surrounding the plan and below are the main points. Again, this is an unbiased post where we are simply bullet-pointing portions of the speech for quick reference for those that are interested.
Diversity in the Types of Health Care Options Available
President Obama’s health care plan does not automatically lump everyone into the same health care plan. Rather, there are allowances for those that already have insurance and those that do not.
For those that have insurance they will be allowed to keep the insurance that they are either paying for out-of-pocket, or their employer is providing for them. However, with the reform, they will have more stability and security as the plan will ensure that the insurance will work better for them. It will do this in the following ways:
- Insurance companies can no longer deny coverage based on pre-existing conditions.
- Insurance companies can no longer refuse or drop coverage when you need it.
- There will be a cap placed on out-of-pocket expenses.
- Insurance companies will be required to cover routine checkups and preventative care with no additional charge.
For those that do not have health insurance the second part of Obama’s health care plan will offer financially affordable options for health insurance coverage. It will do so in the following ways:
- Creation of a new insurance exchange. The exchange is “a marketplace where individuals and small businesses will be able to shop for health insurance at competitive prices.”
- Tax credits will be available to individuals and small businesses that are still not able to afford health insurance at the exchange.
Other Key Points of the Plan
- The plan won’t go into effect for 4 years.
- For those that can’t get insurance in the interim, due to pre-existing conditions, there will be an immediate solution for low-cost coverage for those people.
- Every individual will be required to carry basic health insurance and businesses will be required to offer health care or financial assistance toward health care for all their employees. This is to make sure that the plan will in fact pay for itself in the long-run. There will be a hardship waiver that will be offered when appropriate.
- Medicare and Medicaid benefits will not be taken away.
- There will be a significant increase in accountability for insurance companies.
Fiscal Deficit
Health care represents 1/6 of the economy and reforming health care will also aid in lowering the national deficit. The administration asserts that the savings that they’ll be able to find through the reforms of the plan will in fact pay for itself.
Closing Thoughts
This post is intended to simply summarize the main points of Obama’s health care plan and the President’s speech on health care reform with absolutely no bias attached. There are obviously controversial opinions on this topic, as there was even a member of the audience during the speech that yelled out “Liar!” Our intention with this post is to offer you a quick reference point to what the plan is so you have a foundation to build on as you are deciding your opinion on this issue.
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Source: Obama’s Health Care Plan
Photo Credit: ListOwn.com
