Michael Milken And The Junk Obamacare Kings

Funny how things work in America, junk bonds, which everyone agrees are junk and junk insurance which everyone would have us agree is the lie of the year.

Which why there are blogs, to pull all of this stuff together, so you dear reader are less confused and but no less ugly, because blogs do have their limits, yet I digress.

Five years free of the stage III breast cancer that nearly claimed her life, the Boulder, Colo., resident is once again healthy, but she’s still struggling to put her life back together.

Like millions of Americans, Capil thought she had solid individual health insurance. Then she got sick and found that her coverage was woefully inadequate.

The financial problems that followed would aggravate Capil’s health struggles, force her into bankruptcy and trigger a fraud lawsuit over $230,000 in unpaid medical bills against HealthMarkets Inc., the parent company of her former insurer.

Junk bonds had that same tendency,

Milken worked for the investment bank Drexel Burnham Lambert, and he recognized the incredible financial opportunities that came with the rise in junk bonds during the heady 1980s. Believing that the rewards outweighed the default probabilities, he advised bond issuers and investors to take full advantage of them, hence setting junk bonds ablaze in popularity and success.

One of Milken’s more successful and controversial tactics had to do with using junk bonds to finance hostile takeovers of companies; that is, attempting to buy them against their will. With junk bonds, the acquiring company could borrow serious cash with little or no assets and use it to bid on another unwilling company, or target. Believing that a change in management would make these targets more profitable, the acquiring company would then use the target’s newly acquired assets to repay the debt it incurred to fund the takeover.

Sounds pretty much like the Republican operation on Obamacare, but that aside, *and pardon the incoherence, (it’s 12:42 AM here for God’s sake,) Firedoglake pinched a pretty good post from Pruning Shears

Here is an interesting thing about the new health care law: News stories on it sometimes conflate flaws in the existing system with those in the new one. Many complaints about Obamacare are actually complaints about America’s health care system.

The administration bears some blame for that; the White House has done some conflating of its own. Most famously, the president assured us we would be able to keep our plans. That was never a promise he was in a position to keep. The new program still goes through the private insurance market, which means they decide what customers are restricted to.

But that has always been the case. Insurers playing around with provider networks, policies etc. is a longstanding feature of the system. It’s not as though Obamacare introduced it. It was foolish, though, for the president to speak as though he was the one in charge of that. The only way to guarantee that is to prohibit insurers from altering their policies.

I would say junk insurance policies getting cancelled is a good thing, but for the politically obtuse that is a lie of the year.

Now why is that? Did someone pick a fight with someone who buys ink by the barrel? The story behind the story really is the simple one isn’t it?

* No it isn’t insomnia either. Truth be told I’ve been running back and forth between doctors offices and emergency rooms over minor illnesses, which like surgery, is minor if it is someone else that is sick or having surgery, and so the routine is a little screwy.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: