Tuesday, May 10, 2011

Obamacare is Bailout for Insurance Industry

Obamacare is a government bailout for the insurance industry, based on a Ponzi scheme. As with Medicare, Social Security and [defined-benefit] pensions -- the healthcare insurance market suffers from a shrinking pool of healthy, young clients coexisting with a ballooning of sick, aging baby boomers. This is a recipe for fiscal collapse (i.e. for the insurance bubble to burst).

As George W. Bush had advocated the ownership society, as Bill Clinton had pressured Fannie Mae and Freddy Mac to offer sub-prime mortgages to people who couldn't afford a home -- Barack Obama is mandating expensive comprehensive insurance upon the financially-squeezed middle class, whereas the low income people will be relegated to the Medicaid ghetto. This will add millions of new customers to the private insurance companies -- with taxpayers' subsidies in the form of premium support payments. (Isn't this also Paul Ryan's plan in his proposal to "privatize" Medicare?!)

Both the Democrats and the Republicans are beholden to the private insurance industry. With Obamacare in place, we American citizens are forced to participate in this Ponzi scheme via the individual mandate.

But as the housing bubble had burst a few years ago, the insurance bubble will burst within a decade. Obamacare and RyanCare will be the new Fannie Mae and Freddy Mac.

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