Karl Denninger on Price Dictates, Credit Illusions and the Healthcare Fiasco

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Welcome to Capital Account. European leaders have a breakthrough at their summit! They agreed to do MORE, and continue their game of "debt hot potato." New debt schemes have been announced to try and help Spain and Italy avoid getting burned by the bond market for now, and to allow rescue funds to bailout banks directly. Wait, we though Herman Van Rompuy said that this was "a credible solution for the long term." Hmmm...how's that going?

And in the US, the personal savings rate rises to its highest level since January. Couple that with virtually no real income growth, which we see in numbers out of the commerce department today, and we ask the question: Where is the economy headed? Karl Denninger of Market Ticker will be in studio to tell us what he thinks, and if all these numbers reinforce theview that a recession is coming or already here.

But we can't end without talking about healthcare can we? Yesterday's landmark supreme court healthcare ruling is still being digested, but we some big winners as well as losers on wall street. Insurance companies certainly raked in some big gains. We've heard a lot about the politics behind the healthcare debate, but what about the mathematical and economic one. We'll talk about that with Karl Denninger.

• Category

  News & Politics

[sgarth22]

I normally like Mr. Denninger, but the statement at the 10 minute mark that the incentive to be healthy is strictly a financial decision is rather ridiculous.

[pirucreek]

Dimitri is fine, every guy is jealous they don't have his job.

[Antonsson]

Quote: "The banks give us possibility to have something today that we pay for tomorrow"? This is where the logic fails. All the banks provide is the circulating medium, money, which we could easily create ourselves for much less than they charge.

[timsdvtube]

You dam right it'd a financial decision till you have no choice. Try raising children with out it. Thank God for Sacred Heart Hospital in Pensacola Florida. And SCREW Obama Care, it's a TAX.

[Karen Shapiro]

That is not a wig.

[Thomas Jefferson]

As long as Americans believe that a Supreme Court decision by Supreme Court judges is the equivalent of a Constitutional amendment which can be overturned only by a constitutional amendment, they will continue to consign themselves to a judicial oligarchy growing into a tyranny, none of which is authorized by the constitution itself.

[vanscoyoc]

Taxes used to be to collect revenue. Now it doesn't have to generate any revenue at all. It can be used to ban anything that costs money. The Mandate Tax is an Income Tax so it's covered by the Constitutional Amendment so the Apportionment argument doesnt' apply.

[VallenChaosValiant]

Pre-existing conditions have nothing to do with smoking or weightloss, so I don't know what you are implying. Healthcare or no, smoking and bodyfat shortens your life. If people are too stupid to know they are killing themselves, giving them healthcare won't make things any worse.

[Trueconservative16]

well I think he may phrased it in a wrong way. but if under health care law, you cannot be denied by per-existing conditions, there would be less incentives to lose weight, quit smoking.

[sgarth22]

He is not right. Your statement, "Our insurance is structured in a way that encourages overuse of medical insurances" may be true, however, Mr. Denninger made the statement, "there is no incentive to be healthy because it is divorced from the cost healthcare", is false. A human being's incentive to be healthy is health. We know how to be healthy, eat right, exercise, keep stress low, love people, be loved, etc. When a human being is healthy they feel better and that is the incentive.

[Trueconservative16]

he is right, our insurance is structured in a way that encourages overuse of medical insurances

[Tom Chechatka]

The views of the two fascists running for President of the United States on a health care reform mirroring that of Nazi Germany (1939 T-4) fail to mention relevant facts presented here in this sentence, and this is all Americans need understand while finding courage to speak the truth.