Collapse of Financial Markets and Its Impact Upon National Health Care Priorities

By Benson Weintraub, Esq.
wall_street.jpgFORT LAUDERDALE, FL (October 19, 2008) Economic prognosticators theorized a maximization of wealth through a combination of largely unregulated commercial notes and instruments including sub-prime mortgages secured or subject to credit default swaps or government backed securities; irrespective, the taxpayers were ultimately left holding the billion dollar bag while the investment banks and financial institutions profited by a billion-dollar is the federal government’s subsidies and bailout.
The global financial exchanges each sustained similarly devastating losses created by the integral linkage between foreign banks, especially the of Chinese banks and American institutions which ripped through Freddy and Fannie, largely because of a variant of [unregulated] “insurance,” e.g., credit default swaps in which the notes or “policies” were transferred anonymously connecting other holders, these institutions spiral downward when the underlying note is due or ripe for foreclosure.
The American Public—in the month preceding the 2008 Presidential election—is pre-occupied with an impending financial disaster under a lame duck administration, a diminished interest in foreign policy, especially the war in Iraq, and of course politicians bemoan the fact that “belt tightening” is necessary, Americans must “make do with less,” and by the way. . . improving access to health care won’t materialize in the near future.
What has the government been doing to reform “health reform” at a time—before the RH index crash—which needed to be “bailed out” for years to ensure the continuity of benefits for future generations.
The prioritization of economic factors by both candidates—and the resultant President—diminishes the social contract associated with the health care crisis. Early in the primaries and campaign the candidates presented their respective positions on health care reform, yet it’s now evident that the mega-surplus created over the past 8-years ago was squandered on other “priorities” and health care—despite it’s proportion of the GDP—remains an inefficient “government entitlement program benefit” for which political consensus is unlikely to fund or even reconfigure in the near term.
What will the economics of health care teach us next?