Inquiring Minds Want to Know . . .

• Is AIG still selling credit derivatives? (see, e.g., Timmeh, here.)

• Has Goldman Sachs bought any derivatives (from AIG or anyone else) since the AIG bailout (see, e.g., this)?

• If so, what are the terms (i.e., what is G-S betting for or against, and are those derivatives attached to any "insurable interest" of G-S – i.e., if they're hedging risks re- a commodity or whatever that they actually own, that's one thing; if they're simply speculating that, e.g., commercial real estate in general will tank, that's another)?

Bank Etc. Failures, Present & Looming

"Aug. 14 (Bloomberg) -- 'More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival. . . . '

"Excluding the stress-test list, banks with nonperformers above 5 percent had combined deposits of $193 billion, according to Bloomberg data. That’s almost 15 times the size of the FDIC’s deposit insurance fund at the end of the first quarter."

More great analysis here by Karl Denninger.

See also Bud Conrad at the Daily Reckoning ("the $4.8 trillion in deposits the FDIC is providing coverage on doesn't include the expansion that now extends insurance coverage from $100,000 to $250,000 for normal bank accounts. That likely brings the exposure of the FDIC closer to $6 trillion. But that's pretty inconsequential at this point: using any reasonable accounting method, the FDIC is already bankrupt and will require hundreds of billions of dollars in government bailouts just to keep the doors open.")

So . . . you might want to check on your own bank or credit union's financial status here.

Wealth Disparity Now Greatest in U.S. History

. . . since the collection of such data began in 1917 (per Emmanuel Saez via Paul Krugman).

Dr. Dean Does It

(He and his audience correctly answer pertinent questions re- healthcare reform.)

Isa Genzken

Plastinated children – yes!

At Museum Ludwig thru Nov. 15.

From Those Who Foresaw the Crash

More Healthcare, Except Funny

I hope Margaret and Helen are for real; but it's worth it even if they aren't:

[I]s it just me or did combing your hair become optional when going out in public? I’ve been watching news clips of these town hall free-for-alls and we have definitely become a nation of tired, poor, and huddled masses clearly tempest-tossed, but without access to a good beauty salon. Universal Hygiene – now that is something I could get behind. And all of them are asking for their America back. I wonder which America that would be?

Would that be the America where the Supreme Court picks your president instead of counting all the votes? Would that be the America where rights to privacy are ignored? Would that be the America where the Vice President shoots his best friend in the face? Or would that be the America where an idiot from Alaska and a college drop-out with a radio show could become the torchbearers for the now illiterate Republican party?

* * * * *

And what’s all this crap about killing your grandmother? Are you people honestly that stupid? This has become less an argument about healthcare reform and more a statement about our failed education system. Margaret, I don’t know what plans you’ve made up there with Howard, but down here with Harold, we have living wills to determine how we will leave this world when the time comes. Mine states that unless the feeding tube is large enough for a piece of pie, I don’t want to be hooked up to it.

It just gets better.

Healthcare Reform, & the Best Thing About My Bunion Surgery

Since you asked . . .

Dear Representative __________:

We NEED a meaningful public option.

Last year I had surgery on my foot. I had to stay completely off it for a solid month, and my doctor prescribed a knee-walker to help me get around. The manufacturer my doc recommended said they could ship one for under $500 and get it to me in 3 days.

My insurer (one of the biggest in the business) said they'd cover it, but only if I got it through an "in-network provider."

Now, you might think the point of dealing with "in-network providers" would be that the insurer could negotiate cheaper prices; but apparently, no. They gave me a list of over a dozen in-network providers, and I called them all. It turned out only one could provide the item – and it would take at least two weeks, partly because special authorization was required from the insurer, because this in-network provider's price to procure the item was over $1,000.

I called the appeals people at the insurer and I told them hey, we can get it quicker from the manufacturer and you'll save $500. The insurer could not have been less interested. They'd pay the $1,000, and I'd have to wait two weeks. When the knee-walker finally arrived, it was an inferior model from a different manufacturer.

I have to at least ask whether the insurer and its in-network provider weren't splitting the mark-up at my employer's and ultimately all of our expense – i.e., they require me to accept an inferior product at twice the cost, then the insurer recovers the cost through premiums, plus collects a kick-back from the "preferred provider." (Not to mention the delay and other detriment to my well-being).

The VA is running a great single-payer system, and Medicare is running a great public option. I would gladly trade my private insurance for either. (I'd rather have a bureaucrat between me and my doctor than someone who views my illness as a looting opportunity.)

Meanwhile, I'm afraid to speak frankly with my doctor for fear something I say might be used as an excuse to deny coverage.

Our healthcare money isn't lengthening our lives (we in the U.S. pay twice as much for healthcare than people in some 26 other nations, yet our life expectancies are much shorter; see chart here from ucsc.edu).

So, where is the money going?

Private insurers in the U.S. have had decades to show they can provide decent healthcare coverage, and have failed. Surprise! – they won't do it unless they HAVE to.

Theoretically, yeah, government could regulate private insurers into decent coverage. But as any "free marketeer" should concede, that would be the LEAST efficient way to do it! We'd have to actually regulate, we'd have to staff up enforcement, etc.

Clearly, the MOST efficient way is to give private insurers some COMPETITION!

PS: Congressional Dems REALLY need to focus on media reform. So long as conservatives control 98% of the "mainstream" media, you'll be dogged by misrepresentations and hysterics at every turn.

Below right is the chart referred to above (showing that we in the U.S. spend ca. twice what 26 other countries spend for healthcare, for much shorter life expectancies).

You can contact your reps through the "Contact your U.S. Congressional reps" link in the sidebar at left.

PS: The best thing about my bunion surgery was, I learned I could freeze my sig. other's entrées for a month or more in advance. Otherwise, not so rec'd.

UPDATE: My rep., blessed be, is so far standing up for the public option. So I sent her/him this:

I fervently hope you will continue to stand firm in favor of a public option!

Private insurers in the U.S. have had decades to show they can provide decent healthcare coverage, and have demonstrated they won't do it unless FORCED to.

Government could, theoretically, regulate private insurers into providing decent coverage; but as any true "free marketeer" should concede, that would be the LEAST efficient way to do it! We'd have to actually regulate, we'd have to staff up enforcement, etc.

The MOST efficient way is to give private insurers some COMPETITION! If the free market is so dam' efficient, they've got nothing to fear.

Pls, pls, pls, we need you to continue to care for us. We do notice; we vote for you bec. you do. Thank you.