“A former senior executive of Bristol-Myers Squibb Company (BMS), Andrew Bodnar, pleaded guilty for his role in BMS’s dishonest dealings with the federal government relating to a patent deal involving the popular blood-thinning drug Plavix, the Department of Justice announced today.
The NIH discovered Taxol in the 1960s and spent nearly half a billion dollars on research (GAO report # 03-829). That was taxpayer money.
The NIH gave Bristol-Myers exclusive rights to market Taxol: the deal was that Bristol-Myers was supposed to charge reasonable prices, given that we taxpayers had funded the drug’s development.
In 2001, Bristol Myers reportedly sold Taxol for about $1,700 per month — though it cost only about $90 to manufacture a month’s supply. According to the GAO, we taxpayers spent nearly $700 million on Taxol through the Medicare program from 1993-2002.
More shenanigans at the link. Perhaps Medicare and Medicaid reform need to look at suppliers and doctors.
El Ponzi Grande hiding the haircuts.
The Real Plan
Here is the real plan that now seems odds on to succeed.
The Plan: Dump $500 billion of toxic assets on to unsuspecting taxpayers via a public-private partnership in which 93% of the losses are born by the taxpayer.
This is not a new revelation, there have been many articles on that theme over the past week. However, most missed the corporate bond connection.
Worth the read, if you read Mike Shedlock regularly or not.
Steve Waldman is another one who caught the corporate bond connection in Dark Musings .
I don’t think the scandal of the Geithner plan is going to turn out to be the subsidy to well-connected investors embedded in the non-recourse loan put option. On the contrary, I think that Treasury has already lined up participants for the “Legacy Loans Public-Private Investment Fund” and persuaded them to offer prices so high that despite the put, investors will expect to take a major loss. My little conspiracy theory is that the Blackrocks and PIMCOs of the world, the asset managers who do well by “shaking hands with the government”, will agree to take a hit on relatively small investments in order first to help make banks smell solvent , and then to compel and provide “good optics” for a maximal transfer from government to key financial institutions.
Americans lived in a “Made-off” and Ponzi bubble economy for a decade or even longer. Madoff is the mirror of the American economy and of its over-leveraged agents: a house of cards of leverage over leverage by households, financial firms and corporations that has now collapsed in a heap.
John McCainus can’t even see a ponzi for what it is, but he is a master of long term debt management etc.
Citi Analyst Who Downgraded Walmart Stock on Anti-Employee Free Choice Call with US Chamber of Commerce It’s a good thing rating agencies weren’t involved with ‘AAA’ rating all that crap in mortgages or this kinda of chicanery would be on telebision.
The theory holds that dismantling a big bank could unravel this paper market, with catastrophic global financial consequences. Or not. Nobody knows, because the market for these unregulated financial derivatives, amounting potentially to over $40 trillion (by comparison, global gross domestic product is now not much more than $60 trillion), is the financial equivalent of uncharted waters.
Eh? House of Cards
What it all amounts to is that the bondholders have a gun to the head of the world economy. But it’s a real gun. And it may be loaded.
Fortunately events have proven that the world for all intents and purposes has a hollow head.