08 December 2008

How to pay for universal health care

By Barry Ritholz:

1. Set up a large, well capitalized hedge fund. About $5B should do it.

2. The prospectus of the fund should note its purpose is to “Seek out profit opportunities via arbitraging inefficiencies in the markets and health care system of the United States.” Include standard “Socially Conscious” fund language in clauses such as Do well by doing good.

3. Launch the fund — and promptly max out your leverage. Today’s environment makes it difficult to go 50 to 1, but getting 10 or 20 to 1 should not be much problem.

4. Use the money to write Credit Default Swaps with a notational value of $3 trillion dollars. The premia on these CDS should be about 10-15% or so.

5. Rollover the cash premiums — about $350 billion dollars worth — into a national fund. Use it to buy health care insurance for all US citizens.

6. Declare that due to current credit conditions, your unfortunately must announce to your counter-parties that you will be defaulting on these CDS. Note that significant amounts of this paper are held by JP Morgan and Citi. Another trillion is held by China and Japan, with Sovereign Wealth Funds owning the rest.

7. Send out a press release announcing “systemic risk.” Tell the Treasury Secretary and the Federal Reserve Chief that your imminent collapse will wreak global havoc. Apply for bailout.

Congratulations! You have National Health Care!

Repeat for any major government program: Alternative energy, School Vouchers, Mars Mission, Global warming, Missile Defense Shield, etc.

Note: This is how all government spending programs will be funded in the future.
Makes as much sense as any other plan I have read so far.

1 comment:

  1. "The most potent threat to the Obama administration’s fledgling health care plan may come not from the insurance industry or skeptical doctors but from the Congressional Budget Office. Earlier this week, CBO released preliminary estimates suggesting that the health care proposals — the most ambitious currently under discussion — from the Senate Health, Education, Labor and Pensions Committee would cost $1 trillion and trim the number of uninsured by only 16 million(who would have guessed). With a few more reports like this, CBO could quickly prove more damaging to the administration’s health care efforts than could Republican attacks about socialized medicine." nigga thats with a capital T. u need to check ur self before u wreck the country with dumb shit like that. obama (according to the c.b.o) spent 5.6 trillion dollars in his first month in office. on top of that he keeps spending money and investing in the wrong areas(ever here of pork). no matter how u implement a universal healthcare plan at this current time it is overwhelmingly econmically unsustainable.
    p.s today's healthcare system sucks! now the question that remains is what better plan will work for the country.

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