1.NY TIMES 2/1/13 Doubt is cast on firms hired to help Banks. Once again the taxpayer has lost Billions as the firms hired to find fraud are the same entities working with the Banks and Regulators. This conflict of interest leaves the Consumer vulnerable to Bank misconduct and the flow of tainted money. Elizabeth Warren ( Mass. Senator) is part of the debate on Banking Reform; making laws to create transparency in our Banking system lest we have a repeat of 2007! We made a choice!
2. NY TIMES 2/1/13. Report faults high fees for out of network care. WHAT WERE THEY THINKING? Compared to out of pocket expenses when you’re on Medicare several out of network procedures are egregiously expensive. You too , will be shocked by the costs charged consumers with” good health care coverage”: In NY , Lumbar spine fusion $ 115, 625; Muscle and skin grafts on the torso $150,000. The system is broken and the taxpayers who are the consumers are being bankrupted by these expenses. Where’s the choice?
3. FINANCIAL TIMES 2/2/13. Beware real estate flippers’ effect on rising house prices. The investors who have bought into the US housing market are hedge funds, equity firms and more recently entrepreneurs . The national association of realtors estimates that one third of purchases in 2010 were investment purchases. The Hedge Funds have a sophisticated strategy, they are purchasing the property and converting the rental stream into financial products, using the cash flow as collateral for bonds. If the market does not continue it’s upward spiral, this financial scheme may be the next big flop? We have a choice.
4. LOL FINANCIAL TIMES 2/2/13. Bulls charge ahead as stocks lift off! Several Investment officers , see a great rotation ahead and caution; buy stocks on weakness , don’t chase strength. Moreover, to paraphrase, ” It is central bank liquidity that is driving the market. They are not convinced that the link between asset price inflation and economic growth is durable. It can only last so long.”