http://creepinglunacy.com/2006/10/21/1161413040000.html On Jan. 14, 2000, the Dow Jones Industrial Average closed at a record high of 11,722.98. It took over six and a half years for a new record of 11,727.34 to be set on October 3, 2006. On October 19th, it closed above 12,000. Of course, this new record ... en Marty Thu, 26 Oct 2006 13:23:33 GMT Pebble (http://pebble.sourceforge.net) http://backend.userland.com/rss http://creepinglunacy.com/2006/10/21/1161413040000.html#comment1161869013258 I've long thought that the reason for the exorbitant cost of health care was the virtually unlimited amount of money that the insurance companies were willing to throw at it, and you seem to be substantiating this to a certain degree.&nbsp; My take is that when the &quot;going rate&quot; mark is set at a certain point by the negotiations of the insurance companies, then the uninsured are either going to a.) subsidize the going rate by paying an inflated rate or b.) succumb to the going rate as a minimum, and eliminate the possibility that the market will adjust the cost downward even if supply becomes more plentiful or the means of production become more efficient.&nbsp; In other words, in this strange part of the economy, prices have a tendency to reinforce themselves, rather than being subject to market forces.<br /> <br /> Eventually what's going to happen is the market WILL have its effect.&nbsp; Just as water will erode granite over time, the market will erode the current situation in the health care system.&nbsp; One scenario is that Insurance progressively becomes more and more expensive until it gets to the point that it is unaffordable.&nbsp;&nbsp; When the money supply dries up, the providers will find it impossible to remain in business with the fixed overhead they are supporting.&nbsp; Then there will be a health care crash as hospitals declare bankruptcy en masse.&nbsp; What happens after that?&nbsp; Probably socialized medicine, which likely means the end of U.S. leadership in medical research.&nbsp; Yuck. Geoff http://creepinglunacy.com/2006/10/21/1161413040000.html#comments http://creepinglunacy.com/2006/10/21/1161413040000.html#comment1161869013258 Thu, 26 Oct 2006 13:23:33 GMT