Friday, August 28, 2009

Financial Reform Needed for Healthcare Reform

Hospitals make profits. But where do these profits go? Not to doctors. Doctors bill separately. The facility fee is the major cost of care. If the hospital is paid for the profits go to share holders. If the hospital has a mortage, because of the amortization schedule all the profits go to pay interest on the hospital mortgage, which goes to the banks which goes to other shareholders.

Look at what banks can do. They barrow money for almost free from the US gov with no amortization. They lend 10x that amount due to fractional reserve lending, and they collect 90% interest due to amortization for 20 years on a 30-year loan. When you save money you don't get significant interest until 20 years off. This creates a natural division or class system. Only a few people can break through the wealth barrier.

Business profits, stock dividends, US gov debt interest and hospital profits all go to the same ultra-rich, ultra-elite. Smaller banks would have never failed had they not been dupped into trading their 1/10th fractional cash reserves for worthless mortgage-backed securities.

We need to change how we lend and borrow money. The current system enslaves families and workers. I am all for profits and a free market, but the current system is a monopoly favoring the envestment bankers and ultra-elite. Locking us into our current banking and lending system is the motivation behind plans for a world bank and the cap-and-trade legislation. Furthermore, our current lending systems is responsible for the current housing problems, rising healthcare costs, stress on families, and the failure of the 3rd-world to industrialize.

If you don't believe what easy capital and credit can do, just look at what micro-credit is doing in 3rd-world countries and what school loan programs in the US can do to make higher education affordable and accessible for all.

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