Insurance premiums for small businesses are being driven higher not just because of an increase in healthcare costs, but also because Wall Street wants higher returns:

The higher premiums at least partly reflect the inexorable rise of medical costs, which is forcing Medicare to raise premiums, too. Health insurance bills are also rising for big employers, but because they have more negotiating clout, their increases are generally not as steep.

Higher medical costs aside, some experts say they think the insurance industry, under pressure from Wall Street, is raising premiums to get ahead of any legislative changes that might reduce their profits.

Now, you might think with health insurance reform pending in Congress, the industry would be concerned about screwing its customers. But you'd be wrong because Washington doesn't run this country, Wall Street does:

“There’s no one out there who hasn’t had to do a mea culpa to Wall Street,” said Sheryl Skolnick, an analyst for Pali Capital who follows the companies. While the industry is particularly vulnerable now in Washington, she said, “it seems like they’re more afraid of Wall Street.”

SoBe is at it again, with another powerhouse common sense post. Be sure to check out the graph, although I suspect most of you have seen its like before. And this is not exactly unexpected, and I bet we'll see more of it:

Even more alarmingly, Putnam County, TN, is in such dire straights it has considered doing away with county primary elections:

COOKEVILLE, Tenn. -- Putnam County is looking at the prospect of eliminating primary elections in hopes of saving $60,000.

On Monday night, the county commission voted 14 to 9 to ask the county parties to forgo primary elections and select candidates through private caucuses.

Primary elections are historically low-turnout, but nonetheless canceling an election for fiscal reasons sends off alarm bells with me. You tea party folks yammering about your loss of freedoms might want to consider what it means to cancel an election because the county doesn’t have the funds to stage it.

Who needs safe school buses, elections, or health care for the elderly, right? Those things are not as important as making sure large corporations don't pay any taxes and the wealthy pay even fewer.

Are you going?

I can't, but believe me if I could, I would be there. It's hard not to like stuff like this:

The same financial institutions that caused the economic crisis and took billions in taxpayer bailouts are back to earning incredible profits. Meanwhile, Americans face shrinking pensions, rising foreclosures and unemployment, state budget cuts, predatory lending, outrageous overdraft fees, and sky-high credit card interest rates.

The American people want oversight, accountability and common-sense financial reform NOW. This is the classic David vs. Goliath fight, with Wall Street spending millions and millions on lobbying to defeat reforms that would protect the American people and our economy

You won't be surprised to learn of even more change you can't believe in.

Meet the newest addition to the Commodity Futures Trading Commission. If you've been reading Mother Jones recently, then you already know quite a bit about Scott O'Malia. Like the fact that he once worked as a top in-house lobbyist for an energy company, Mirant, that manipulated California's market Enron-style. Or that, while on this company's payroll, he lobbied against a bill to expand the CFTC's authority to police derivatives. Or that the Senate Agriculture Committee, which reviewed his nomination, declined to ask him any specific questions about his pro-deregulation lobbying on not one but two occasions.

 Read more…

And, they say that it's "just" a recession. Chaos decided to roost in Detroit, today, as the truly despressed and distressed came out in droves seeking housing and utility payment assistance from the City of Detroit:

The economic tsunami washing over metro Detroit swept its casualties to the doors of Cobo Center on Wednesday in the form of 35,000 people so desperate for help with mortgage and utility bills that threats were made, fights broke out and people were nearly trampled.

Some were treated by emergency medical workers on site.

 Read more…

That's why money is flowing into bank stocks. There's no place else to go.

Of course, you can't separate finance from the real economy so eventually the bank stocks will reflect reality - that they are still in for heavy loan losses in addition to the bad assets they kept on their books when the USG bailed them out.

Although, all things considered, perhaps a dying economy isn't our biggest problem since we also have a dying planet.

Happy Tuesday!

I've tried to draft this post for the past couple of weeks and it isn't working. So I've decided to try stream of consciousness so the readers could do the work for me. Kind of like mad libs Joyce. So here it goes:

We are a country built on paper (mortgages, securities, etc.) We don't make things any more. We make paper. That is by design. It's what our elites wanted, sell off the industrial base, keep the paper.

She had a dream
And boy it was a good one
So she chased after her dream
With much desire
But when she get too close
To her expectations
Well the dream burned up
Like paper in fire
- John Cougar Mellencamp

How do you organize/protest in a country built on paper?

Fire?

Edward Harrison of Credit Writedowns has a lengthy post on Naked Capitalism entitled The recession is over but the depression has just begun. Basically, Harrison has concluded that despite the fact that the national government now remains the only entity that can "pick up the slack" in generating demand to get the economy moving forward, "large scale government deficit spending is politically impossible." Hence, welcome to America's new Lost Decade.

Since I've been working for two days on a post and it still sucks and doesn't say what I want and doesn't say it the way I want, I went looking for diversions and found the above headline which amused my inner 12-year-old. And then the article interested the more mature side of me. Because it is about a species changing its ways in order to survive:

"Behavioural flexibility coupled with altered environmental conditions, e.g. food scarcity, can trigger astonishing innovations in animal behaviour," concludes Siemers. This innovative behaviour is not an isolated case and is probably passed on from generation to generation.

George Washington of Washington’s Blog, posted Black's recent proposal on Naked Capitalism. Black is Associate Professor of Economics and Law at the University of Missouri – Kansas City, and the former head S&L regulator, and author of the book, The Best Way to Rob a Bank is to Own One. Black' has been a lonely voice in the wilderness warning that the entire financial collapse, from sub-prime mortgages, to rating agencies, to the creation and handling of credit default swaps, is fraught with criminal fraud that both the Bush and now the Obama administrations have refused to deal with.

I hope Leah's okay.

From the Station Fire to Pendleton remains aflame, as the LA NBC's photo slideshows reveal.

Jesse of Le Café Américain tells us why pretty much everybody is wrong about what is needed:

The most intractable part of the current financial crisis, and the ongoing problem of the US economy is the huge tax which is levied on the American public by its corporations, primarily in the financial and health care sectors, and a political system based on lobbyists and their campaign contributions.

 Read more…

From Naked Capitalism, William Black discusses the widespread criminality that is our current economic system:

Black is introduced around 5:34 (even though the first few minutes are good as well) and it lasts about 15 minutes before the Q & A

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[via zero hedge, of course!]