China, Healthcare, Fed Chairman, Housing Sales

A formal summit between China and us started today. They are concerned about the devaluation of the dollar given the amount of our debt they hold. The Treasury Secretary reassures them that the U.S. is committed to a higher savings and lower deficit. These words sound good, but I have yet to see action taken that reflect it. We are still spending like there is no tomorrow, and I have concerns about the 'healthcare' push. Too much haste means much more waste that we cannot afford. I am for everyone having access to care. In 2006, I signed up with Blue Cross as an individual and had to pay $300 a month for a $5000 deductible plan. I was in the 'healthy' group. After a year was up, they sent me a notice raising the monthly premium although I had not used their insurance. Their response was to cover their costs. I cancelled my policy and continued uninsured as I had for the 10 years previous. During that time when I needed medical assistance, I told the doctor I was a self-payer and negotiated a smaller fee by paying cash. I think one step that would help our system is having more competition amongst the insurance providers. Second, as has been acknowledge, keeping people out of the emergency room when it is used for what a clinic or doctor's office could handle would create immense savings. Setting up a government program will not do that because the government does not have to make a profit and these are for profit companies. Also, history shows that the government collectively does not have a business mind and therefore the waste is immense with no one there to cut it away as a private or public company is forced to do.

The words of Fed Chairman Bernanke seem to be carrying less weight now. He said he is for a stronger dollar policy yet the dollar keeps falling overall. And he continues to justify his behavior in rescuing the banks because he did not want to be in his position with a 'second Great Depression'. I think that concern colored his lens on doing what would have helped this country in the long run. It seems time to replace him.

June new home sales are up 11%. That is good news yet remember the price of homes continue to decline. Based on this statistic, it seems that the lower housing prices are reaching the level where buyers are beginning to see it as a good deal. When the number of foreclosures start to turn around, then the bottom will be reached.