·Popular past posts ·

The Bloviator diagnoses what's wrong with Krauthammer's cure for the malpractice insurance problem:

The proposal he [Dr. Charles Krauthammer] makes [in Time Magazine] — which is the same type of proposal that most physician groups I've heard has been making — will NOT entirely solve the malpractice insurance problem. It may stop the lawyers from receiving as many dollars per case, and may reduce the number of lawsuits, but it does nothing to repair the critical underlying problems with how malpractice insurance companies invest their money and price their policies. If malpractice insurance companies can continue to offer deep discounts on insurance rates when the market is high and their "float" is paying beaucoup dividends, and then ratchet up their rates when the market goes in the tank, then we will be revisiting this problem the next time the bond markets enter a trough. Who will Dr. K blame then?

Aren't the bond markets expected to enter a trough as a result of the so-called "stimulus" package? Here we have yet another unintended consequence of putting political concerns ahead of economic policy.

{ 5:44 PM }

.