PRE MARKET AND HEALTHCARE

S&P futures almost flat but NASDAQ/NDX futures down decently because:

GOOGL down $12 as European anti-trust wants to fine them 2.4 billion euros for skewing searches in their favor…and just overall sloppy action yesterday in tech/internet. To be watched…ESPECIALLY THE SEMIS.

OIL prices strong this morning. Energy remains in a bear market but a word to the wise: EVERYONE NOW BEARISH. EVERYONE NOW DOWNGRADING. EVERYONE CALLING IT A BEAR MARKET…AFTER THE DROP.  As of this second, any bounce is just that, an oversold bounce.

On healthcare…we are always amazed how politics picks and chooses. The big deal now is that the CBO says over 20 million will lose healthcare insurance under the Senate bill while lowering the deficit by a decent amount. We dont understand! Why would anyone look to the CBO on healthcare when they said Obamacare would sign up 23 million but only signed up 11 million. That’s only off by over 50% yet we are supposed to pay attention to their opinion? We have read through this. We have read all opinions. We have news for you…no one knows the outcome if it is passed but we do know one thing. IF THE TRAJECTORY DOES NOT CHANGE, IT WONT MATTER ANYHOW.

Medicaid was enacted in the mid 60s to help the indigent get medical care. It was supposed to help out the states. Over time, it was expanded to help seniors who have no assets and for long-term care for people with disabilities. Once Washington took over, guess what happened? Costs skyrocketed. Budget? What’s a budget? Any bill sent in? Paid! Through the years, expanded and expanded and expanded which led to Obama who relaxed eligibility rules in a major way. Medicaid rolls went up over 10 million people to the mid- 70 millions. Repeat, over 70 million people on Medicaid. Taxes were hiked on all. Costs soared. Guess what happened next? You got it! More and more refused to accept Medicaid patients. Need we go on.

Another government program which started out as a helping hand to a certain few turns into a monstrous, and we mean monstrous blob spending over $570 billion last year…that’s $570 billion. Go read about the EPA and how it started and where it is now! Again, we have no idea how it ends. What we do know is that we are $20 trillion in debt, deficits forever, government spending rising infinitum and anyone who wants to roll some of the nonsense back…is heartless, racist, and all that crap. Good luck!