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Another bigger bubble

Karl Denninger

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First break the medical monopoly

"Obamacare" is not the issue.

It never was.

The first thing that has to be cleaned up is the blatantly corrupt, monopolistic medical industry.

Obamacare addresses nothing of the core problem. It's like getting insurance against the ever-increasing escalation of threats by gangsters. There's something fundamentally wrong with the proposition.

As Denninger points out, the function of Obamacare is to lock in high prices and leave the underlying system as it is.

It's a bailout for a hopeless bubble in medical expenses, one that is designed so that roughly 50% of the population will be forced by law (under the enforcement of the IRS no less) to subsidize the sky-high-and-rising-costs of the the other 50% of the population.

It's not unlike "public" school, another out-of-control financially corrupt system where no cost is too high and there's no attempt to put in sane limits.

Those with school-aged children get a subsidy (big families who rent their homes instead of owing them get massive subsidies) while property owners without school-aged children are compelled to pay under the threat of losing their homes. All this is done under the banner of "fairness" and "for the next generation."

There are actually retired people whose annual real estate tax bill is a MULTIPLE greater than their total annual mortgage payments were when they originally bought their homes. They're forced to move out of homes they already paid for in full (and a great sacrifice) and often have to leave the very communities they helped build. How on earth is this fair?

Also, what do sky high real estate taxes do to families who do have children? It's no party for them. These taxes translate into less money for food, clothing, utilities, retirement savings, college savings and just plain living.

Who profits?

The politicians who "give away" the goodies and the army of bureaucrats who "manage" these corrupt systems while pulling down massive salaries. (Find out how many "administrators" in your local school district are pulling down salaries of $100,000 or more. I guarantee it will curl you hair.)

- Ken McCarthy