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View Diary: Justin Amash (R) gets Town Hall question: "Why would we want to trust insurance companies...?" (170 comments)

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  •  I think a more pertinent question would have (4+ / 0-)

    been, "why do you trust insurance companies." And the answer, if the politician were truthful, would be because insurance brokers and salesmen are the primary denizens of the chambers of commerce that groom and promote business-friendly politicians. Insurance people are the enforcers and gate-keepers in any community. The banksters, who control the money, use insurance to determine who advanced economically and who doesn't.
    We have known for decades that so-called "red lining" strategies in which certain communities were shut out of money for capital improvements, expeditious turnover of real estate, residentail rehabilitation and racial integration were overseen by banks, but practically enforced by insurance requirements:
    fire insurance
    liability insurance
    title insurance
    mortgage insurance
    automobile insurance
    business insurance
    flood insurance
    wind insurance

    If the insurance requirements weren't met, lenders wouldn't lend and if loans couldn't be had, real estate didn't sell.
    And the federal government, instead of challenging the insurance industry, which acts as a funnel of funds to the investment industry, came up with subsidies.

    crop insurance
    guaranteed student loans
    foreign trade subsidies

    Everything to mitigate financial risk, even though risk is where capitalism is supposed to excell.

    Why is the ACA so strongly opposed? Because the health insurance industry is being hoist on its own petard. In exchange for getting more customers, they have to open their books to inspection and prove that their overhead is no more than a certain percent. Profits are going to be constrained, which means that the flow of funds into investments is going to be slowed.
    Let's hope.

    •  It will be predictably but not massively (1+ / 0-)
      Recommended by:
      hannah

      profitable and boring. They hate that.

      The modern conservative is engaged in one of man's oldest exercises in moral philosophy;the search for a superior moral justification for selfishness

      by CTMET on Sat Aug 31, 2013 at 05:40:14 PM PDT

      [ Parent ]

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