What We're Reading

As the market partied this week, believing that Obamacare would be smashed and their premiums would revert back to lower levels, I sat and chuckled.  You're already spending money you haven't received in terms of lower premiums but there's always a price. Always. Already the "costs" of repealing ACA are being calculated and surprise surprise, it won't be free or easy.  In fact QZ ponders it will cost "us" Billions but let's examine the possibilities.  From BuzzFeed:

In the wake of Donald Trump’s stunning victory Tuesday night, the only certainty for the American health care industry is the end of the Affordable Care Act, at least in its current form.

Everything else for the industry, however, is deeply uncertain. Supreme Court cases have jeopardized parts of Obamacare before, but with a Trump presidency, the industry is for the first time facing the real possibility of a drastic and abrupt repeal of the entire ACA — a scenario that some industry sources say insurance companies and hosp

Who doesn't love the lame duck session?  It's that special time of year when Santa comes early to Wall Street and you too, can benefit.  As one example, outgoing Congressmen and woman who lost during mid terms, tend to throw in the towel (they won't be around next session anyway) and all types of goodies get through the Congressional pipeline which were stalled during the normal session.  This years winners if you're an investor are:

• Banks and insurers.  Congress repealed a portion of Dodd-Frank so that derivatives will now be covered once again by FDIC Insurance, thus lowering the risk to banks and insurers like AIG.*
• Health insurance companies get to keep their special tax breaks.
• Tourist destinations like Las Vegas get their travel promotion subsidies.*
• In a victory for food companies, the legislation even makes federally subsidized school lunches less healthy by allowing companies that provide them to include fewer whole grains. This boosts their profits because junk food is less