There is a small group of progressive Democrats– very small– who are actually independent of Wall Street. You may have noticed that last week Barbara Boxer (D-CA) and Jim Webb (D-VA) introduced a bill targeting outrageous bonuses of banksters who are getting it out of TARP money.
Yesterday Sherrod Brown (D-OH) introduced an even more stringent bill that targets any bonus over $25,000-– where the Boxer-Webb bill goes after anything over $400,000. I’m with Sherrod on this one. He says he wants to use the proceeds to help small businesses expand and hire new employees. In a talk about how Wall Street benefited from the infusion of taxpayer dollars via TARP, he explained why he thinks Main Street needs to be helped along now and how this is a way to get that started. “It’s time,” he said, “for Wall Street to return the favor to Main Street. While big banks have rebounded thanks to the help of American taxpayers, small businesses are still struggling. If a big firm that received taxpayer help is now paying out massive bonuses, they should be able to help American small businesses expand operations and hire new workers. Small business growth will create jobs and get our economy back on track.”
You would be hard pressed to come up with something in the American system that still works for ordinary people, which is one of the reasons why moving out of the country holds more appeal to me all the time.
Ian Welsh points out the road ahead, and concludes:
Which is to say, the problem in the US right now is that virtually nothing of any significance works. Not the military, who with 50% of the world military budget is being fought to a draw by ragtag militias, not the political system, and definitely not the economic system.
Fixing this, fixing America, is a literally monumental task, like building pyramids. It will take a generation, perhaps two, of very committed people.
I fear that those people don’t exist in large enough numbers, at least not in any position of power or able to seize power.
I hope Americans prove me wrong.
I went to the dermatologist’s office last night to have another abnormal mole removed.
“Is there any way we can remove a lot of these at once?” I asked him.
“The insurance company won’t pay for more than one at a time,” he said.
I thought that was bizarre. “Why?”
“It loses the deterrent effect.”
“You mean, they don’t want me actually using the insurance. They want me to die,” I said.
He just smiled and said nothing. Oy.
Six down, six to go, $50 a pop. I spend more time in his office than I do at home.
They can’t lend to businesses because we hurt their feelings by trying to regulate them!
Hey, asshole, stop your sobbing…
The five largest U.S. health insurance companies sailed through the worst economic downturn since the Great Depression to set new industry profit records in 2009, a feat accomplished by leaving behind 2.7 million americans who had been in private health plans. For customers who kept their benefits, the insurers raised rates and cost-sharing,and cut the share of premiums spent on medical care. Executives and shareholders of the five biggest for-profit health insurers, UnitedHealthGroup inc., WellPoint inc., Aetna Inc., Humana Inc., and Cigna Corp., enjoyed combined profit of $12.2 billion in 2009, up 56 percent from the previous year. It was the best year ever for Big Insurance.
The 2009 financial reports from the nation’s five largest insurance companies reveal that:
* The firms made $12.2 billion, an increase of $4.4 billion, or 56 percent, from 2008.
o Four out of the five companies saw earnings increases, with CIGNA’s profits jumping 346 percent.
* The companies provided private insurance coverage to 2.7 million fewer people than the year before.
o Four out of the five companies insured fewer people through private coverage. UnitedHealth alone insured 1.7 million fewer people through employer-based or individual coverage.
o All but one of the five companies increased the number of people they covered through public insurance programs (Medicaid, CHIP and Medicare). UnitedHealth added 680,000 people in public plans.
* The proportion of premium dollars spent on health care expenses went down for three of the five firms, with higher proportions going to administrative expenses and profits.
Simon Johnson at Baseline Scenario:
Being nice to the biggest banks will not save the midterm elections for the Democrats. The banks’ campaign contributions will flow increasingly to the Republicans and against any Democrats (and there are precious few) who have fought for real reform.
The president’s only political chance is to take on the too big to fail banks directly and clearly. He needs to explain where they came from (answer: the Reagan Revolution, gone wrong), how the problem became much worse during the last administration, and how – in credible detail – he will end their reign.
What we have now is not a free market. It is rather one of the most complete (and awful) instances ever of savvy businessmen capturing a state and the minds of the people who run it. Is this really what the president seeks to endorse?
Americans like to think we don’t have these problems – but we do. Prostitution isn’t always a “victimless crime”:
COLUMBUS, Ohio (AP) — About 1,000 American-born children are forced into the sex trade in Ohio every year and about 800 immigrants are sexually exploited and pushed into sweatshop-type jobs, a new report on human trafficking in the state said Wednesday.
Ohio’s weak laws on human trafficking, its growing demand for cheap labor and its proximity to the Canadian border are key contributors to the illegal activity, according to a report by the Trafficking in Persons Study Commission.
”Ohio is not only a destination place for foreign-born trafficking victims, but it’s also a recruitment place,” said Celia Williamson, an associate professor at the University of Toledo who led the research.
From 1990 to 2000, Ohio’s foreign-born population increased 30 percent, and the state has a growing pool of legal and illegal immigrants who draw victims or hide victims, Williamson said. These networks are highly organized, with brothels fronting as legitimate businesses.
My, they’ve become a screaming parody of themselves, don’t you think?
The Obama administration has already sent a sternly-worded letter to Anthem Blue Cross over the company’s excessive rate increase for individual policy holders in California. How excessive? Up to 39 percent. But that’s not all. Anthem Blue Cross and Blue Shield also informed their customers that they are changing their practice of adjusting rates annually, and as of now are reserving the right to raise premiums basically whenever they feel like it.
You got that? They want to do exactly what the credit card companies were doing.
There’s little beyond sternly-worded letters that the administration can do, other than something like maybe advocating strongly for some kind of legislative remedy, say in the form of serious competition to private insurers in the form of a robust public option for health insurance. But there’s something Congress can do, and that’s put the insurers on the hot seat and investigate. From the Speaker’s blog, The Gavel:
As Secretary Sebelius pointed out, WellPoint [parent company to Anthem Blue Cross/Blue Shield] reported a staggering $2,740,000,000 in profits for the fourth quarter of 2009 alone – eight times more than the last quarter of 2008 – and more than $4,750,000,000 for all of 2009. In fact, the company reaped these record profits even as it lost more than 1.4 million members…..
Today, Energy and Commerce Committee Chairman Henry Waxman and Subcommittee Chairman Bart Stupak announced that the Subcommittee on Oversight and Investigations will hold a hearing on February 24th regarding the premium rate increases.
The hearing, conveniently, will be held on February 24, the day before the bipartisan White House healthcare summit.