Articles and More!: Panic

Showing posts with label Panic. Show all posts

Sunday, March 30, 2014

Health Insurance Rates Are Going Up Next Year, But It"s Nothing to Panic Over

The LA Times has a piece today about the next battleground for Obamacare: rate increases for 2015. The warnings are already coming thick and fast:

WellPoint Inc., parent of California’s leading health insurer in the exchange, Anthem Blue Cross, has already predicted “double-digit-plus” rate increases on Obamacare policies across much of the country.

…. Health insurers aren’t wasting any time sizing up what patients are costing them now and what that will mean for 2015 rates. Hunkered down in conference rooms, insurance actuaries are parsing prescriptions, doctor visits and hospital stays for clues about how expensive these new patients may be. By May, insurance companies must file next year’s rates with California’s state-run exchange so negotiations can begin.

I hope everyone manages to restrain their hysteria over this. Here in California, we’ve played this game annually for years. Health insurers in the individual market propose wild increases in their premiums—10 percent, 20 percent, sometimes even 30 percent—and then dial them back a bit after consumer outrage blankets the media and the Department of Insurance pushes back. But even then, we routinely end up with double-digit increases. Just for background, here are the average annual rate increases requested by a few of California’s biggest insurers over the last three years:

Anthem Blue Cross: 10.7%

Aetna: 12.1%

Blue Shield: 15.4%

HealthNet: 12.0%

And this doesn’t include changes in deductibles or out-of-pocket maximums. Add those in, and the annual proposed increases are probably in the range of 15-20 percent. Obamacare, of course, limits both those things, which means that in the future insurance companies will have to put everything into rate hikes instead of spreading the increases around to make them harder to add up.

Bottom line: if we end up seeing double-digit rate increases, it will be business as usual. Insurance companies will all blame it on Obamacare because that’s a convenient thing to do, but the truth is that we probably would have seen exactly the same thing even if Barack Obama had never been born. Let’s all keep our feet on the ground when the inevitable huge rate increase requests start flowing in.

MoJo Blogs and Articles | Mother Jones

Health Insurance Rates Are Going Up Next Year, But It"s Nothing to Panic Over

Monday, October 14, 2013

WALMART SHELVES CLEARED DURING FOOD STAMP PANIC

MANSFIELD, LA (KSLA) -

Shelves in Walmart stores in Springhill and Mansfield, LA were reportedly cleared Saturday night, when the stores allowed purchases on EBT cards even though they were not showing limits.

The chaos that followed ultimately required intervention from local police, and left behind numerous carts filled to overflowing, apparently abandoned when the glitch-spurred shopping frenzy ended.

Springhill Police Chief Will Lynd confirms they were called in to help the employees at Walmart because there were so many people clearing off the shelves. He says Walmart was so packed, “It was worse than any black Friday” that he’s ever seen.

Lynd explained the cards weren’t showing limits and they called corporate Walmart, whose spokesman said to let the people use the cards anyway. From 7 to 9 p.m., people were loading up their carts, but when the cards began showing limits again around 9, one woman was detained because she rang up a bill of $ 700.00 and only had .49 on her card. She was held by police until corporate Walmart said they wouldn’t press charges if she left the food.

Lynd says at 9 p.m., when the cards came back online and it was announced over the loud speaker, people just left their carts full of food in the aisles and left.

“Just about everything is gone, I’ve never seen it in that condition,” said Mansfield Walmart customer Anthony Fuller.

Walmart employees could still be seen putting food from the carts away as late as Sunday afternoon. “I was just thinking, I’m so glad my mom doesn’t work here [Walmart] anymore, that’s the only thing I could think about, those employees working, that would have to restock all that stuff,” said O.J Evans who took cell phone video of the overflowing shopping carts at the Mansfield Walmart.

Evans believes it was natural human reaction that led people to fill up their carts during the glitch, but Walmart shoppers Stan and Judy Garcia feel very differently. ”That’s plain theft, that’s stealing that’s all I got to say about it,” said Garcia.

Lynd says contrary to rumors, nobody was unruly or arrested and they were mainly there to help prevent shoplifting and theft.

A dispatcher for Mansfield police also confirms officers were called in for crowd control at the Mansfield Walmart. She said the shelves were cleared out, forcing Walmart to stop selling food at 9 p.m. There were no arrests.

There was, however, a huge mess left behind. Pictures and videos obtained by KSLA News 12 show aisles packed with shoppers emptying the shelves in Springhill. Another video shows what appear to be at least dozens of overflowing carts left abandoned in the aisles at the Mansfield store, against the backdrop of emptied shelves in the meat department.

It all happened at the end of a day in which the EBT system went down in several states, including Louisiana. Xerox, a vendor for the EBT system, experienced a power outage while conducting a routine backup test in one of the company’s locations. While the system was back up Saturday night, it appears that it was not functioning entirely properly in some areas.

Kayla Whaling, a spokesperson for Walmart, tells KSLA News 12 that the company was “fully engaged and monitoring the situation and transactions during the outage.”

“We did make the decision to continue to accept EBT cards (and purchases on WIC and SNAP) during the outage so that they could get food for their families.”

Asked whether Walmart would be taking the loss on any food purchased on the cards that did not show limits, or on the perishable food left behind in carts, Whaling would only say that “we monitored transactions during the outage.”

A spokesperson for the Louisiana Department of Children and Family Services says they take all allegations of potential fraud seriously, they are aware of the reports and they will be investigating.

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WALMART SHELVES CLEARED DURING FOOD STAMP PANIC

Saturday, August 10, 2013

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

Michael Snyder
Economic Collapse
August 10, 2013

How much is 1,000,000,000,000,000 yen worth? Well, a quadrillion yen is worth approximately 10.5 trillion dollars. It is an amount of money that is larger than the “the economies of Germany, France and the U.K. combined“. It is such an astounding amount of debt that it is hard to even get your mind around it. The government debt to GDP ratio in Japan will reach247 percent this year, and the Japanese currently spend about 50 percent of all central government tax revenue on debt service. Realistically, there are only two ways out of this overwhelming debt trap for the Japanese. Either they default or they try to inflate the debt away. At this point, the Japanese have chosen to try to inflate the debt away. They have initiated the greatest quantitative easing experiment that a major industrialized nation has attempted since the days of the Weimar Republic. Over the next two years, the Bank of Japan plans to zap 60 trillion yen into existence out of thin air and use it to buy government bonds. By the time this program is over, the monetary base in Japan will have approximately doubled. But authorities in Japan are desperate. They know that the Japanese debt bomb could set off global panic at any time, and they are trying to find a way out that will not cause too much pain.

Unfortunately, the only way that this bizarre quantitative easing program will work is if investors in Japanese bonds act very, very irrationally. You see, the only way that Japan has been able to pile up this much debt in the first place is because they have been able to borrow gigantic piles of money at super low interest rates.

Right now, the yield on 10 year Japanese bonds is sitting at an absurdly low 0.76%. But even with such ridiculously low interest rates, the central government of Japan is still spending about half of all tax revenue on debt service.

If interest rates go up, the game is over.

But now that the Japanese government has announced that it plans to double the monetary base, it would be extremely irrational for investors not to demand higher rates on Japanese government debt. After all, why would you want to loan money to the Japanese government for less than one percent a year when the purchasing power of your money could potentially be halved over the next two years?

Amazingly, this is exactly what the Japanese government is counting on. They are counting on being able to wildly print up money and monetize debt, but also keep yields on Japanese bonds at insanely low levels at the same time.

For the moment, it is actually working. Investors in Japanese bonds are behaving very, very irrationally.

But if that changes at some point, we could potentially be looking at the greatest Asian economic crisis of all time.

And there are some very sharp minds out there that believe that is exactly what is going to happen.

For example, the founder of Hayman Capital Management, Kyle Bass, has been sounding the alarm about Japan for a long time. He correctly predicted the subprime mortgage meltdown, and in the process he made hundreds of millions of dollars for his clients. Now he believes that the next major crash is going to be in Japan.

According to Bass, the bond bubble in Japan is so large that once it begins to implode fear is going to start spreading like wildfire…

Remember, Japanese banks in general have 900% of their tangible assets invested in JGBs that are the most negatively convex instrument you can put into a portfolio. Assume for instance that a bank holds a 10 year bond yielding 80 basis points. A 100 basis point move will cost the JGB investor about 10 years of expected interest payments.

Think about the psychology of all the players and financial implications if rates do move 100 basis points. Think about the solvency of a nation which currently spends 50% of its central government tax revenues on debt service, half of which earns the lowest yields of any country in the world.

You can’t look at this as a simple question. You need to think about this as a multivariate equation. You have to think about the incentives and the fears of all the participants. And you need to think about the fiscal sustainability of the government.

If rates even rise by a full percentage point, it could start a stampede toward the exits that nobody in the entire world would be able to control…

I ran a survey of 1,009 Japanese investors where we asked: “If rates were to move up 100 basis points, would that engender more confidence and make you want to buy more JGBs?” or, “Would you take your money elsewhere, even if it were hamstringing your government’s ability to operate?” 8 – 9% of respondents that said that they would buy more bonds and almost 80% said they would run, not walk the other way.

For much more on this, you can watch a video of Kyle Bass discussing why Japan is doomed right here.

And of course Japan is not the only “debt bomb” that could potentially go off over in Asia. As I mentioned in another article, the major problem over in China is the level of private debt…

In China, the big problem is the absolutely stunning growth of private domestic debt. According to a recent World Bank report, the total amount of credit in China has risen from 9 trillion dollars in 2008 to 23 trillion dollars today.

That increase is roughly equivalent to the entire U.S. commercial banking system.

There is simply way, way too much debt in our world today. Never before has there been so much red ink all over the planet at the same time.

Many in the mainstream media insist that this party can go on indefinitely.

But that is what they said about the housing bubble too.

Sadly, the truth is that every financial bubble eventually bursts, and this global debt bubble will be no exception.

I hope that you are getting prepared while you still can.