I’m one of those people who gets nervous when the market hits new highs amidst what looks like a deteriorating economy for the middle class…but I’ll try not to be a Debbie Downer so, “Happy New Record for the Dow Day!”
Feeling bad for anyone who went long on Whole Foods recently…quite a pullback today.
Herding the incomes of the young into deteriorating assets like housing is a dangerous misallocation of capital and investment. Investing heavily in housing means those incomes are not being invested in productive opportunities in other sectors of the economy, whether that is investment in the stocks of other companies, or individuals starting their own businesses.
I definitely don’t want to harsh on anyone’s mellow about Obamacare, but this is the part that worries me: the bad debt that hospitals are going to take on. This issue is going to have to be reconciled somehow.
The good news: once Obamacare kicks in, out of pocket health costs will be capped at about 6 K for individuals and 12 K for families. The bad news: you could still end up in bankrupcty if you don’t have that kind of money. But I believe most hospitals and health care providers can put you on an extended payment plan.
The money-shot quote from this article:
Francois de Brantes, executive director at the Health Care Incentives Improvement Institute, said high-deductible plans are exerting a Trojan horse effect, “awakening the general public and individual plan members to the absolutely insane way in which health care prices are being set today and in which health care services are being paid for today.”
Ahhh, the unintended consequences of change…
Shocking news: providers and hospitals suffer when everyone has high deductible health plans and little cash on hand to pay the bills.
Then again, maybe not.