There’s Shoot and there’s..
September 29, 2011 § Leave a comment
Which may be a nice way of saying what Matt Borsch@Goldman Sachs recently explained in relation to US private health insurer’s pow in back of Repugnants’ positions on so-called Obamacare (aka Affordable Care Act)..
To wit: that private insurers had been conservatively* pricing their premiums, and overshooting in this regard because no doubt about it most of their reports were “reflecting strong earnings”.
* aka supply-side code and resulting limited/controlled supply, thus – whole point of the exercise – higher prices.
Smile some may, tho SHOT ought be the order of the day!
Blogged about here since so seldom has the true definition of supplyside economics been stated. Yes, we know of demand, supply and knowledge economies (so-called). Unknown to many folks, however, is its origins in London for instance back around 1986. Whence the catchcry Big Bang was coined. To effect financial deregulation, rather than Fred Hoyle’s scientific issue.
Yes, kiwis had it earlier still, but being relatively small could get over the ’87 equity calamities somewhat quicker… move on. As risk averse professionals surely did.
Not to be distracted… DO GET THIS — managed economies in the neocon vision effected control over supply so as to set prices. That attained, absolutely in some cases, relatively in others, and financial deregulation emplaced, the price-setting order was to generate a whole new industry devoted to building and sustaining this end.
Therein the problem. Now writ large. And before us all.
Oh yes, even kiwis. For instance, web-based global milk powder market pricing would be renderable if but one dominant supplier were in the market. Which I understand to have been the case these past several years. And even if not one dominant but rather a very large potential market with limited supply…
Hopefully, not to be overlooked in the present debate on RNZ news or omitted from powers-that-be commentary.
Not finger-pointing, y’understand, merely explanatory..
Been some week, huh. Blacks played well agin the French and pool plays winding up has left breathing space.. tho several have suggested anti-climax.. next being a rebuild of sorts for the League players—for which the best of luck all round!
ps: another use of OVERSHOOT.. hey we could have started something 🙂