This is an interesting story.
Wednesday, 24 October 2007
Wednesday, 17 October 2007
I responded to this discussion on the U.S. Health care Crisis and the Disadvantages of the Canadian system with this comment:
There is a need to come up with new, simple, and elegant ideas for health care in the U.S.
For example, right now I think that people can only buy health insurance plans that are certified by their state. We could pass a federal law that allows people to buy any plan that is certified by another state. This would give more competition.
We could have a catastrophic national insurance plan. For example, the government could reimburse anyone's health care bills after they exceed $ 8,000 for the year. The idea is to set the deductible high enough so maybe 80% would not qualify, but so it is low enough that it provides enough of a cap for private insurance companies that they can reduce rates and insure more people. The deductible could be indexed to the rate of health care inflation.
Finally, prescription drugs are a big expense. An elegant solution may be to require drug companies to name 3 or 4 price points for their drug. For example, a company whose drug is now $100/month could set an 'A' price of $5/month, 'B' price of $35/month, a 'C' price of $80/month, and a 'D' price of $250/month.
The Social Security Agency gets your earnings each year anyway. They could issue everyone a card that lists you as having 'A', B', 'C', or 'D' pricing, depending on your income from last year.
Drug stores would be required to sell you the drug for the 'D' price unless you showed them your card.
This way, a person making $10,000 a year would pay less than Bill Gates, but the drug companies would still get their profits
Praveen's blogs:
Unix Simplicity
My Simple Trading System
Math and Logic Play
There is a need to come up with new, simple, and elegant ideas for health care in the U.S.
For example, right now I think that people can only buy health insurance plans that are certified by their state. We could pass a federal law that allows people to buy any plan that is certified by another state. This would give more competition.
We could have a catastrophic national insurance plan. For example, the government could reimburse anyone's health care bills after they exceed $ 8,000 for the year. The idea is to set the deductible high enough so maybe 80% would not qualify, but so it is low enough that it provides enough of a cap for private insurance companies that they can reduce rates and insure more people. The deductible could be indexed to the rate of health care inflation.
Finally, prescription drugs are a big expense. An elegant solution may be to require drug companies to name 3 or 4 price points for their drug. For example, a company whose drug is now $100/month could set an 'A' price of $5/month, 'B' price of $35/month, a 'C' price of $80/month, and a 'D' price of $250/month.
The Social Security Agency gets your earnings each year anyway. They could issue everyone a card that lists you as having 'A', B', 'C', or 'D' pricing, depending on your income from last year.
Drug stores would be required to sell you the drug for the 'D' price unless you showed them your card.
This way, a person making $10,000 a year would pay less than Bill Gates, but the drug companies would still get their profits
Praveen's blogs:
Unix Simplicity
My Simple Trading System
Math and Logic Play
I saw a tech column in the Chicago Tribune which reminded me that any field - no matter how unsexy and plain vanilla it may appear - is ripe for innovation.
The tech writer himself started off the article by saying, "Here's a sentence I never imagined writing: I love my new power strip."
He went on to mention a common problem with conventional power strips/surge protectors(which I can relate to): A lot of power supplies are like bricks - when you plug them into the power strip, they block one of the other outlets.
Your power strip is reduced from 6 outlets to 4-5, and you end up hunting around the walls of the room, looking for another wall outlet.
The Powersquid, on the other hand, is a power strip and surge protector, but the outlets are at the end of 6 extentions - sort of like an octopus:
This means you can use all 6 outlets - even with "brick" power supplies.
The tech writer himself started off the article by saying, "Here's a sentence I never imagined writing: I love my new power strip."
He went on to mention a common problem with conventional power strips/surge protectors(which I can relate to): A lot of power supplies are like bricks - when you plug them into the power strip, they block one of the other outlets.
Your power strip is reduced from 6 outlets to 4-5, and you end up hunting around the walls of the room, looking for another wall outlet.
The Powersquid, on the other hand, is a power strip and surge protector, but the outlets are at the end of 6 extentions - sort of like an octopus:
This means you can use all 6 outlets - even with "brick" power supplies.
Apple computer has been very successful in selling song downloads with its iTunes store.
It shows that the trend started by Napster has gone mainstream and legit - people prefer to have the option of buying songs electronically, a la carte.
They do not want to be forced to buy a physical CD bundled with songs they do not care for.
Now, Amazon has jumped on the bandwagon and is offering MP3 songs for download at 89 - 99 cents each.
It shows that the trend started by Napster has gone mainstream and legit - people prefer to have the option of buying songs electronically, a la carte.
They do not want to be forced to buy a physical CD bundled with songs they do not care for.
Now, Amazon has jumped on the bandwagon and is offering MP3 songs for download at 89 - 99 cents each.
Monday, 15 October 2007
To really succeed and have joy in your life, you need to forgive the past, and drop anything that is not working.
You are starting fresh today.
The only real impact of the past on today is on your physical starting conditions (i.e. health, money, etc.)
For example, the amount of actual money that you had in the bank when you woke up this morning was a result of the past. However, your past feelings about that money were not physically here when you woke up. Those are mental tendrils snaking out and binding you to your past. You have the option to completely drop them.
Both you and Donald Trump woke up this morning. You both have different initial starting conditions due to your past. He has billions of dollars.
But you can, if you wish, drop all the ideas and concepts that you have had about money, wealth, career, etc., and adopt Trump's mindset.
You can enter a sort of "mental witness protection plan" and think however you want to.
When Rush Limbaugh woke up this morning, he could have had a change of heart, gave up his radio show, and became a radical liberal. There is nothing physical emanating from his past that is forcing him to think today like he thought yesterday.
Wayne Dyer compares living today based on your past to "steering a boat by observing it's wake."
You are starting fresh today.
The only real impact of the past on today is on your physical starting conditions (i.e. health, money, etc.)
For example, the amount of actual money that you had in the bank when you woke up this morning was a result of the past. However, your past feelings about that money were not physically here when you woke up. Those are mental tendrils snaking out and binding you to your past. You have the option to completely drop them.
Both you and Donald Trump woke up this morning. You both have different initial starting conditions due to your past. He has billions of dollars.
But you can, if you wish, drop all the ideas and concepts that you have had about money, wealth, career, etc., and adopt Trump's mindset.
You can enter a sort of "mental witness protection plan" and think however you want to.
When Rush Limbaugh woke up this morning, he could have had a change of heart, gave up his radio show, and became a radical liberal. There is nothing physical emanating from his past that is forcing him to think today like he thought yesterday.
Wayne Dyer compares living today based on your past to "steering a boat by observing it's wake."
"Tyler Perry's Why Did I Get Married?" was the number one movie this weekend.
He is an independent playwright and movie producer - yet his film beat out George Clooney and Cate Blanchett.
Perry is a good example of overcoming your past.
Growing up, he experienced poverty and physical abuse. He became a bitter, angry man.
One day, he had an awakening, and poured out his anger onto paper. This became the subject of his first play - which was on surviving child abuse.
This play flopped at first - but he kept promoting it while struggling through odd jobs. Years later, his play caught on and his career took off.
He is an independent playwright and movie producer - yet his film beat out George Clooney and Cate Blanchett.
Perry is a good example of overcoming your past.
Growing up, he experienced poverty and physical abuse. He became a bitter, angry man.
One day, he had an awakening, and poured out his anger onto paper. This became the subject of his first play - which was on surviving child abuse.
This play flopped at first - but he kept promoting it while struggling through odd jobs. Years later, his play caught on and his career took off.
Thursday, 11 October 2007
The interesting story of the 30th annual Chicago Marathon wasn't the record heat, the complaints of insufficient water supplies, or the early stoppage.
Instead, it was the interesting finishes of the race.
1. The men's race came down to a photo finish - the winner won by a fraction of a second.
2. The women's race sounded like a modern day version of the Tortoise and the Hare.
Romanian runner Adriana Pirtea had a 30-second lead with 2 miles to go.
Unfortunately, she started "show boating" by high-fiving fans at the approach to the finish line. Ethiopian Berhane Adere sneaked by her to win by 3 seconds.
Instead, it was the interesting finishes of the race.
1. The men's race came down to a photo finish - the winner won by a fraction of a second.
2. The women's race sounded like a modern day version of the Tortoise and the Hare.
Romanian runner Adriana Pirtea had a 30-second lead with 2 miles to go.
Unfortunately, she started "show boating" by high-fiving fans at the approach to the finish line. Ethiopian Berhane Adere sneaked by her to win by 3 seconds.
Tuesday, 9 October 2007
See if you can outsmart your foot:
1. While sitting at your desk, lift your right foot off the floor and make clockwise circles with it.
2. Now, while doing this, draw the number "6" in the air with your right hand. Your foot will change direction!!!
I told you so... And there is nothing you can do about it.
1. While sitting at your desk, lift your right foot off the floor and make clockwise circles with it.
2. Now, while doing this, draw the number "6" in the air with your right hand. Your foot will change direction!!!
I told you so... And there is nothing you can do about it.
Wednesday, 3 October 2007
Internet marketing courses and ebooks usually talk about the same thing:
--Sign up for an autoresponder
--Create a squeeze page
--Create a series of emails
--Rinse and repeat
Now, the latest trend that the gurus talk about is harnessing offline marketing in your business. Yes, the direct marketing snail mail techniques of the good old days.
Of course, cold-calling through the mail is expensive. But, they are talking about
getting your leads online, and then marketing to them both online and offline.
Here's an opportunity to make a quick buck or two:
Internet marketer Russell Brunson is capitalizing on this trend. He is giving away a free report called the Internet Marketing Myth.
To make it "viral", he has it set up so that when you get the report, and provide a paypal email, you also automatically become an 2-tier affiliate.
So, not only do you get to read an interesting report for free, but you can make $1 for anybody that downloads the free report through your link. And, if they sign up, you get 50 cents for anyone they refer.
--Sign up for an autoresponder
--Create a squeeze page
--Create a series of emails
--Rinse and repeat
Now, the latest trend that the gurus talk about is harnessing offline marketing in your business. Yes, the direct marketing snail mail techniques of the good old days.
Of course, cold-calling through the mail is expensive. But, they are talking about
getting your leads online, and then marketing to them both online and offline.
Here's an opportunity to make a quick buck or two:
Internet marketer Russell Brunson is capitalizing on this trend. He is giving away a free report called the Internet Marketing Myth.
To make it "viral", he has it set up so that when you get the report, and provide a paypal email, you also automatically become an 2-tier affiliate.
So, not only do you get to read an interesting report for free, but you can make $1 for anybody that downloads the free report through your link. And, if they sign up, you get 50 cents for anyone they refer.
Tuesday, 2 October 2007
Mary Umberger is a real estate columnist for the Chicago Tribune.
She recently wrote that the trade journal "Inside Mortgage Finance" surveyed mortgage brokers, and found that 33% of purchase contracts in August were canceled.
This compares to 4% three years ago.
A lot of these cancellations were probably caused by lenders either canceling loans or tightening their standards during the sub-prime credit crunch.
But, another factor not widely discussed is that some sellers (not buyers)were short cash at closing time.
Sellers?
Normally, sellers walk away from closings with a check. But, these days, many sellers do not have a lot of equity. They took 95 - 100% mortgages, or tapped lines of credit.
Now, at closing, they do not recover enough to cover seller fees and commissions.
She recently wrote that the trade journal "Inside Mortgage Finance" surveyed mortgage brokers, and found that 33% of purchase contracts in August were canceled.
This compares to 4% three years ago.
A lot of these cancellations were probably caused by lenders either canceling loans or tightening their standards during the sub-prime credit crunch.
But, another factor not widely discussed is that some sellers (not buyers)were short cash at closing time.
Sellers?
Normally, sellers walk away from closings with a check. But, these days, many sellers do not have a lot of equity. They took 95 - 100% mortgages, or tapped lines of credit.
Now, at closing, they do not recover enough to cover seller fees and commissions.
Monday, 1 October 2007
Forbes Magazine wrote about how, during the real estate market bubble, mortgage lenders got a little too confident in FICO scores, and failed to give more weight to how much the borrower put down, and how well the borrower's income is documented.
They quoted a Fair Isaac (the company behind FICO) vice-president: "FICO scores an individual's risk over time. It's not an assessment of the riskiness of the loan made."
Fair Issac and bond rating agency DBRS put out a study in January which found that a borrower with a high FICO score and no-money-down mortgage was just as likely to default as a lower scoring borrower who puts down 40%.
Then, the article contrasted two sub-prime loan portfolios from 2006:
In the first case, Lehman Brothers sold a $1.2 billion subprime loan portfolio in which borrowers had an average FICO of 631 (in the upper range of sub-prime). Fair Isaac predicts that a borrower with this score should default 5% of the time.
But, after 18 months, 15% of this portfolio's borrowers are in default (more than 90 days behind on payments).
In the second case, a portfolio called "Nationstar Home Equity Loan Trust 2006-E" had borrowers averaging a score of 600. The FICO estimate is that 6% of borrowers would default by now. But, only 4% defaulted.
The manager of Advantus Capital Management told Forbes that the difference between these two portfolios was documentation. The Nationstar portfolio had 30% better documentation than the Lehman package.
They quoted a Fair Isaac (the company behind FICO) vice-president: "FICO scores an individual's risk over time. It's not an assessment of the riskiness of the loan made."
Fair Issac and bond rating agency DBRS put out a study in January which found that a borrower with a high FICO score and no-money-down mortgage was just as likely to default as a lower scoring borrower who puts down 40%.
Then, the article contrasted two sub-prime loan portfolios from 2006:
In the first case, Lehman Brothers sold a $1.2 billion subprime loan portfolio in which borrowers had an average FICO of 631 (in the upper range of sub-prime). Fair Isaac predicts that a borrower with this score should default 5% of the time.
But, after 18 months, 15% of this portfolio's borrowers are in default (more than 90 days behind on payments).
In the second case, a portfolio called "Nationstar Home Equity Loan Trust 2006-E" had borrowers averaging a score of 600. The FICO estimate is that 6% of borrowers would default by now. But, only 4% defaulted.
The manager of Advantus Capital Management told Forbes that the difference between these two portfolios was documentation. The Nationstar portfolio had 30% better documentation than the Lehman package.
Forbes magazine recently had an article on smart investors who suddenly won big during this summer's credit crunch.
One of those winners was a $12 billion New York City hedge fund called Harbinger Capital Partners.
According to a source, Harbinger started buying credit default swaps on sub-prime mortgages last November.
Each credit default swap meant that Harbinger agreed to pay an insurance premium over the life of a mortgage pool that it did not own. In return, Harbinger would receive a payout on principal losses from the underlying pool.
The Forbes article described it as "buying fire insurance on a building it doesn't own and then hoping for a fire."
But Harbinger didn't need a fire (i.e. the mortgage pool to have actual losses) before it could make a profit.
Like most derivatives, swaps can be resold. There was enough worry during the summer crunch that the swap prices tripled.
Harbinger sent a letter to investors saying that the fund was up 50% through the end of July.
One of those winners was a $12 billion New York City hedge fund called Harbinger Capital Partners.
According to a source, Harbinger started buying credit default swaps on sub-prime mortgages last November.
Each credit default swap meant that Harbinger agreed to pay an insurance premium over the life of a mortgage pool that it did not own. In return, Harbinger would receive a payout on principal losses from the underlying pool.
The Forbes article described it as "buying fire insurance on a building it doesn't own and then hoping for a fire."
But Harbinger didn't need a fire (i.e. the mortgage pool to have actual losses) before it could make a profit.
Like most derivatives, swaps can be resold. There was enough worry during the summer crunch that the swap prices tripled.
Harbinger sent a letter to investors saying that the fund was up 50% through the end of July.
Subscribe to:
Comments (Atom)