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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?


To: Bobby Yellin who wrote (573)10/18/1998 12:35:00 PM
From: Tundra  Respond to of 2794
 
Morgy Dog,

A comment on just one small aspect of the article; that dealing generally with health care. During the course of this expansion, corporate america has benfitted greatly from the migration from
traditional healthcare to managed care. In many cases, savings were realized which translated to better bottom line profits.

I believe this trend in savings has ended. I believe it possible if not likely a counter trend is now in place in which the continued growth of healthcare costs will come as a surprise to many . Ultimately, if correct, this will negatively pressure the corporate bottom lines. I would watch the healthcare component of the CPI closely.

The issue, of course, is broader than its effects simply on corporate america. Demographics suggest it is one the taxpayer in general will have to deal with. Elder care and the costs associated therewith will likely have to be revisited. I doubt an easy solution exists.

Regards,

Tundra



To: Bobby Yellin who wrote (573)10/19/1998 9:11:00 AM
From: Worswick  Respond to of 2794
 
If I may go off a bit on a tangent perhaps to derivatives.... it has struck me traveling around the US that "prosperity" is clustered around the large metropolitan cities. In the countryside people are really struggling to keep what they have and not slip downwards.

Private colleges at $35,000 per year without all the ancillary things you need to get to college? Like transport? Books, food, etc.

A statistic that James Davidson came out with a year or two ago was that the "average" American household in 1990 had $1,200 in the bank. In 1997 they had $4,000 of credit card debt.

Now, moving towards the gearing of our financail markets it would seem to me that this statistic is that the credit cards of America are "maxed" out. Since 60% of the economy is depending upon "consuymer buying" where is the prosperity going to come from in the next few years? Germany? England? Ireland? I am trying to think of places in good shape here. Norway...with what 14 million people?

YOur url didn't work for the times. Can you get it again Bobby.

Many, many thanks for posting that article

My best to you,

Clark