Hyderabad Investment：The Baseline Scenario
James:
A few points:
> When you have PE firm people in charge of a company and their “primary fiduciary responsibility” is to maximize return to their investors (which usually includes those investors running the PE firm) then there is always the “fiduciary responsibility” to maximize the profits – be it short or long term.
If the long term prospects are less profitable than the short term prospects then it is the “responsibility” of the PE firm’s operators to, in essence, loot the company and maximize return. This is easy to understand regardless of how repugnant it may be. The moral hazard here is obvious.Hyderabad Investment
> The same exact model is in play with health insurance companies. When I hear Obama or Sibelius (sp?) or anyone else hold up a medical:loss ratio of 80 as a good thing… when historically it was in the mid 90s before Wall Street’s mandate of insurance companies’ primary fiduciary responsibility to their shareholders (and quarterly profit reports to meet or exceed analysts’ expectations), I become sickened by the lack of honest discourse regarding the raw profit motives of insurance companies. I agree with Wendell Potter who stated that the Insurance companies profit and please Wall StMumbai Stock Exchange. by NOT providing actual health insurance coverage.Kanpur Wealth Management
I am sure you are aware of these facts (I read 13 Bankers and can attest to your recognition of the problems that exist in the world – your eyes and mind are open.).
As for health care, I am a small government progressive who believes that the big bully in the schoolyard (government in this metaphor) has his way until he makes a fatal error in judgement and the smaller victims (will of the majority) can assert themselves OR the bully destroys everyone in the schoolyard and everyone loses a lot (bloody revolution) with an uncertain outcome.
But I also believe that government should only do what the private sector cannot do or does not do well. The private model of medicine has failed to serve the needs of the US. So I acquiesce to the Socialist model of health care ala Europe and Canada with the understanding and concession that it will grow the size government.
> I think the better questions (and answers) that should be addressed concern how to constructively remove the profit motive from endeavors where the profit motives subvert or pervert the stated goal of the endeavor – such as we have today in US medicineAgra Stock. Removing the influence of money as ProfGuoabong Wealth Management. Lessig has proposed is an good place to start.
Agra Wealth Management
