Wednesday, June 14, 2017

Free market principle doesn't work for healthcare

U.S is the country truly believe in free market. In order for market to work, we need buyers sensitive to price and quality. In healthcare patients have limited ability to differentiate quality, and price shopping when a patient has life threatening disease, is, if not fantasy, very very difficult to do. Yes, you can price shop on small things, but for the big ticket surgeries and cancer treatments, how sensitive are you to price difference?

Free market does not work in healthcare. Not in a meaningful way. Add on to the complexity is the insurance market. For profit insurers are avoiding the sick and try very hard to sign up the healthy. Given the high cost of coverage, the young and healthy, if not working for large employer, try to avoid buying health insurance altogether. These behaviors make the US healthcare the most expensive in the world, while the results, judging from premature death rate and life expectancy, lagging OECD countries. What's the point of having a first rate medical research if you don't have access to healthcare?

Sunday, February 05, 2017

Reflection of 2017

T. Rex as chief diplomat
Pit bull in charge of education
ruled by billionaires who
complain about unfair term of trade
building a wall
to keep the newcomers out
oh yes
the thundering roar goes
a nation for the natives only
while the real natives die
on the trail of tears
their numbers dwindle
to almost a disappear
can't even keep their own
drinking water clean
from the pollution of oil
the richest smell of foul

This is the right nation
not always correct, just right
in the sense of self-righteousness
by way of alternative facts
and enhanced interrogation
no longer willing to lead
it's now all about me

Friday, November 11, 2016

History does not repeat itself, but it does rhyme.

Financial crisis is a symptom, the underlying economic ailment is what's hurting the society.
When people are hurting, there are behavioral responses that is human nature, which didn't change much over the recorded history.

If we look back at the Great Depression, and the ensuing tariff war, and the following competition for colonies, and the resulting militarism and fascism, I wonder what's in the store down the road for the world? The world is so interconnected today it is hard to imagine we will take the same paths our grandparents did. But given the rise of nationalism worldwide and the recent 2008 financial crisis, the deja vu cannot be ignored.

CFPB to become toothless?

I am wondering if Consumer Financial Protection Bureau (CFPB), the crown jewel of Elizabeth Warren's achievement, will be reformed into toothless SEC like commissioner structure, now that Republicans have both the House and Senate, and the Presidency. Bank stock index rose more than 2% yesterday, which maybe informed by the change of political regulatory environment. The working whites who worked so hard to elect their president may wake up to find the law designed to protect them water down. Wall Street is just too smart and the less fortunate brothers and sisters stand little chance to win. Either way you move Wall Street has a plan to get you.

GOP obstruction on Supreme Court nominee pays off

The injustice on Supreme Court nominee Judge Merrick Garland is hard to bear. Obstructionism will be on the rise due to this precedent. "You did it first."

RMB further appreciation

I think RMB will face renewed pressure from the US to appreciate given president-elect Trump's promise to mid-western state supporters a manufacturing revival .

DOL fiduciary rule on brokers

One possible big winner in the financial industry from Trump's victory is the broker dealers who tried and failed to push back Department of Labor's fiduciary rule on brokers. The rule basically says that small investors cannot tell the difference between a broker and an advisor and therefore they should be treated the same. Before this DOL ruling, advisors have to consider your best interest in determining if an investment is good for you, but commission based brokers do not.

Sunday, May 15, 2016

Alexender Hamilton on marriage

"It's a very good thing when their stars unite two people who are fit for each other, who have souls capable of relishing the sweets of friendship and sensibilities... But it's a dog of a life when two dissonant tempers meet." Alexander Hamilton

Thursday, February 11, 2016

some educational links

gravitational wave https://www.youtube.com/watch?v=vNXJfDvNc2s

Wednesday, December 02, 2015