frosty

People vs. Profits: The Great Health Insurance Myth

Who buys health insurance for $100-$300/month? I pay $400/mo and my employer pays an additional $400/mo. In addition, I pay $100 for medicare? What I have read is that the average health insurance policy for a family is $12,000-$14,000/year.

Insurance companies DO make a practice of denying claims (I've had it happen several times over the last 40 years) but where they make their biggest benefit is in denying pre-existing conditions. If they can systematically exclude the people who will cost them the most money, they enhance their profits substantially. This might be a rational business strategy but it's lousy national health policy.

Think about it on a national scale especially on a long term basis. Over a career of 40 years, I have contributed, in present dollars, nearly $200,000 for health insurance (family of 4) and my employer has contributed at least $200,000 more (the subsidy used to be higher). If I suddenly contracted a 'condition' and then lost my health insurance, chances are I would not be covered by a new insurer in spite of having paid over $400,000 into the system over 40 years. Health insurers have created a system where they all collude to deny coverage to those with a higher likelihood of needing coverage. And that's where the big executive bonuses come from!

"Many people think there was no penalty for the executives at AIG when it did poorly and that they need longer-term compensation so they don't benefit from taking inordinate amounts of risk. But if you look at where they've been this year, they've been pretty much wiped out." - CEO Robert Benmosche

Sorry, they owe us (stockholders, taxpayers, and customers) reparations for the harm they did. Imagine a small or medium size company doing what they did. They all would have been fired and the company put out of business, but AIG was too big! Why should bigness be an excuse for forgiving crimes against humanity.

Wall Street bonuses aren't dead, says David Pauly, but giant cash payments probably are - killed by Goldman Sachs' (GS) plan to pay in restricted stock instead. Meanwhile, Ryan Chittum thinks Goldman's move has been overplayed by the press: The 30 execs involved are still going to make bank.

BS. What's the difference? Some day the stock awards turn into cash. And they cost some suckers a bundle - either other stockholders or their customers or us taxpayers. These people don't deserve any bonuses for years to come. In fact, they owe investors and taxpayers reparations for the financial disaster they caused. Whether cash or stock, they should be taxed in full when awarded!!!

Goldman Sachs (GS) responds to shareholder pressure by changing executive bonuses to "shares at risk" that can't be sold for five years, instead of cash.

But they're not selling to GS. They're selling on the open market. They may get the shares back as bonuses, but where do the shares come from unless GS creates or buys them.


On Dec 10 03:19 PM woollyB wrote:

> Given the rate of insider selling the past few months, it's almost
> like a trade off: the bonus shares just replace the recently sold
> shares.

Goldman Sachs (GS) responds to shareholder pressure by changing executive bonuses to "shares at risk" that can't be sold for five years, instead of cash.

If they give out $20 billion in stock, that would be roughly 114 million shares @ $175/ share. GS currently has 514 million shares outstanding. How does this work? Do they issue new shares to pay bonuses thus diluting stockholders? Do they buy shares on the open market to give as bonuses? How many years can this go on?

Richard Russell: Downturn Will Be 'Vicious'

"I somehow doubt that contingency plans have moved far beyond executives closing their eyes and wishing really, really hard."

They also have to remember to click their heels 3 times.

Weekly Market Notes: Jobs Summit a Success - Just Look at Employment Numbers

On the other hand, when the business sharks take over the economy co-conspiratorially with government, you get the dot-com bust and the finance bust. An economy too free brings out the worst players to play their worst.

Wall Street Breakfast: Must-Know News

That's gratitude for you! You save a guy's life and he steals your wallet! Goldman and the others need to give the money back one way or another.

Wall Street Breakfast: Must-Know News

AIG is a failed company. Failed executives can desert a sinking ship or sink with it. They don't deserve pay raises or bonuses, in fact they should refund past exorbitant compensation to the taxpayers.

Windfall Profits Tax and Goldman Sachs: Quid Pro Quo

The profits these bonuses derive from are a transfer payment from the taxpayers to GS and other banks. Kinda like welfare. Investors who benefitted from this swindle still have a chance to take profits if they have a real fear that a windfall tax is impending. I hope they do and I hope it is. It's time for the taxpayers to get some payback for our generosity, although it won't be dollar for dollar.


On Dec 04 03:14 AM sethmcs wrote:

> Windfall profit tax? Let's see who takes the hit management or shareholders
> comrade.

Goldman Sachs (GS) is reportedly weighing plans to hike the equity portion of its pay packages, awarding all annual bonuses to senior executives, including CEO Lloyd Blankfein, in company stock. The firm has been meeting with major investors to explain why it deserves the record pay-packages it's awarding itself after accepting TARP funds.

These bonuses in any form are not deserved. They are a transfer payment from the taxpayers to Wall Street. I say, tax the hell out of banks and give it to US manufacturers, US Main Street businesses, US entrepreneurs, and US new ventures. These are the businesses that create jobs, prosperity, and long term well-being. Big bank profits only enrich the rich.

Genzyme's Very Bad Year

Mr. Icahn is interested only in turning a fast buck. People like him used to be called corporate raiders. If he becomes a major owner and has his way, kiss Genzyme goodbye as he would likely try to sell all or parts of the company. He attempted this and failed at Yahoo last year and this. His history is full of similar strategies with some failures but far more successes as he is a billionaire. For all his prowress, other investors in his targets don't always make out so well. Beware of this man. Personally, I hope that Genzyme straightens out and becomes the top flight biotech science company it was before industrial and management issues became such a major distraction. It may otherwise have bright, prosperous, and long-lived future.

More Foreclosure Sales, Please

And this from a man who complains about government intervention in markets. " The market can handle a huge volume of transactions without suffering indigestion" only because of the $6000 tax credit and the devastating drop in prices. Take away the $6000 and what do you think we have? So Mr. Calafia Beach must be hoping for more government subsidies for housing????? Reconcile that!

Did the January Effect Start on November 1st This Year?

Joe says the market can only go up for the next 3 months. Good luck with that. Check out the "15 Indicators" and decide for yourself if the market is more likely to go up or down in the next few months.

Some of Goldman Sachs' (GS) largest shareholders are peeved about the $717K-average bonuses the bank's staff are to get this year, and want the bank to disperse more earnings to investors, sources say. Despite record net income, analysts expect Goldman's 2009 earnings per share to be 22% lower than in 2007. A spokesman for the bank pointed out that, since going public in 1999, the company has generated a total return of 159%, while shares have more than doubled YTD.

Greedy shareholders trying to take food out of the mouths of well deserving employees? Neither! How about giving it back to taxpayers!?!

When the bonus payouts are made we'll see a new fleet of Acuras, BMWs, Mercedes, Ferraris . . . These traitors think so little of America they won't even buy American cars.