Health Care Reform & The Responsibilities of the States

August 12, 2013

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As we all now, one of the issues of the Obama administration has been health care reform. October 1st is a very important date for all business owners and their employees. This is the date that employers must meet their requirements under the new Health Care Reform. Although the health care mandate has been passed by Congress, there is still some uncertainty as far as how it will be enforced.

Approximately twenty-four states have passed legislation to enforce the changes in the laws and to regulate the insurers in their states, while the remaining states have not yet made decisions to enforce the laws. Some of the states may not be ready by the October 1st deadline to comply with the new health care reform.

This would be unfortunate for the consumers residing in states which have not enacted the enforcement of the reforms. These consumers could face not being able to take advantage of the benefits they may be entitled to receive. However, if the states do not act n the October 1st deadline, they risk the federal government moving in to regulate the insurers and to enforce the health care reform laws.

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President Obama Saves The Day

April 12, 2011

President Obama Saves the Day

 

Americans were anxiously awaiting the outcome of discussions over a new plan to reduce the  national budget deficit when Obama and his team emerged with a new plan.  The budget for the National Head Start program was in danger of being slashed.  (Click onto the above link to rad more.)


Gold, Another Economic Bubble?

September 19, 2009

Photo by Eduard Traq

Photo by Eduard Traq

No doubt you have heard about the debate over whether we are in the midst of another economic bubble. Economists and financial experts say there are ten problem areas for us, and we need to pay attention to them.

Economic bubbles are not a new phenomenon. They have been occurring throughout history and mankind never seems to learn the lesson associated with them. It seems people are prone to looking for a “pot of gold” at the end of the rainbow only to find out it was not what they thought. This was the case in the economic collapse of France caused by John Law in the eighteenth century.

The ten problem areas are: the Chinese economy, the “Green” bubble, the Gold bubble, the Federal Reserve bubble, the Trash (junk) bond bubble, the Education bubble, the Subprime bubble, the Life Insurance securitization bubble, the Commercial Real Estate bubble and the Emerging Markets bubble.

It is interesting that the issue of increased gold prices is now an issue with the Chinese and Russian governments. The price of gold often increases when paper money is devalued by printing paper money.

It will be interesting to see how the Obama administration handles this challenge. We are fortunate that we have access to research and technology which could help us out of this problem before it gets out of control.


CIT Lending Profile

July 17, 2009

sinking dollarIt appears that the Obama administration is firm about its decision to let the “chips fall where they may” with CTI Group, which was a major lender of DIP loans which were made to riskier business borrowers.

A review of their lending profile is very revealing in that it is made up of 58.77% of defaulted loans. Its latest transaction was to Eddie Bauer last week in the amount of $100 million line of credit. Eddie Bauer has had its problems in the last few years as it has just filed for its second Chapter 11 reorganization in the last six years.


CIT ends discussions with the government

July 16, 2009

Another Bank Failure?

Another Bank Failure?

CTI announced yesterday that it has ended negotiations with the Obama administration as it has been told that the U.S. will no longer extend monetary support to bail them out of an impending bankruptcy, despite the reliance of thousands of retailers upon the company.

CTI has been a provider of funding to small and medium businesses for over 100 years. Its current financial woes apparently stem from “venturing into risky corporate and consumer lending and heavy reliance on fickle investors for funds.”

The bank, unlikely to be sold at this point will be the largest bank to fail since Lehman Brothers.

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