Bailouts Get Bigger When Banks Fail

…and HCR update

The biggest bank failure of 2009 happened last week when the FDIC moved to shut down Colonial BancGroup of Alabama, along with four other banks, bringing the total thus far this year to more than 70. A quick deal with BB&T to purchase Colonial caused its shares to rise. FDIC will be shouldering much of the losses, of course, which adds billions to the bailout of the banking system while at the same time working to further bank consolidation for the wealthiest banks still standing.

Such situations are a ‘win-lose’ proposition. Win for BB&T and their stockholders, lose for We the Taxpayers. This scheme where the feds cap the buyer’s losses at taxpayer expense is just another outrage to the hard-pressed public at a time when all the glorious pronouncements of economic recovery have yet to even begin to touch the lives of the general public still losing jobs at a high rate while no new jobs seem to be forthcoming.

And on top of the still-dismal economic situation for average people in this country, now we have the extremely contentious health care reform debate ongoing that looks more and more like bad street theater every day. Between the noisy hoards of idle old folks bused around the country to shut down discussion of provisions during Town Hall meetings held by vacationing congresscritters, and the absurd lies being spewed by the usual suspects at FoxNews and right wing radio, it’s looking more and more like the final result will be a significant new tax on the working poor that will be earmarked directly to the health insurance industry by means of mandatory purchase of junk insurance.

The situation is really health insurance reform, though reform isn’t really a good title either considering how much the Death by Spreadsheet crowd will end up getting from the public directly and from the government as subsidies. Yes, they will have to stop excluding anyone with a pre-existing condition, retroactively canceling policies if the insured person gets sick, and simply not paying for covered health care after the fact. But they will more than make up for however much this costs them by the ~40 million new policies the uninsured will have to purchase, and with government subsidies for many of those as well as losses incurred by having to honor their contracts.

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Health Care Kabuki Theater Deluxe

Those of us attempting to live on what was a shoestring budget even before the Great Unending Recession/Depression have probably been watching the large insanity of vacationing Congresscritters attempting to hold Town Hall meetings with their constituents back home with some bemusement. It’s no secret that the WingNut Network [a.k.a. Fox] and Hate Radio pundits have been inciting their faithful dummies to riot, since this has been ongoing ever since they lost the election last November in a big way. Between the clueless idiots who can’t believe a black man is a real American citizen (or that exotic Hawaii is actually a state) and the Bermuda shorts and gray hair crowd shouting “Keep the government OUT of my Medicare!” one really does have to wonder if maybe there’s something in the water making people lose what few IQ points they might have had back in kindergarten.

Some of us also know that going to a doctor regularly if you aren’t actually sick is not wise, thus are probably better off if we don’t suffer some chronic condition with our very limited access to the health care system than we might be if we had annual check-ups and the ability to demand whatever drug is advertised on television nightly. While it’s a sad truth that ~50 million Americans have no access to the health care system – and that’s an insurance issue – I haven’t seen anybody talking much lately about the health care system itself, which just happens to be the third leading cause of death in the United States.

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Filed under Conscious Living, Economic Recession, Elitism, Health Care, Inflation, Nutrition, Politics, Prescription Drugs, Surviving | Comment (0)