How many points will the DOW drop on Monday?

[TER]

Any guesses?

I'm thinking somewhere between 200-300 points...

[puppetmaster]

29

[devil21]

Drop? Ha! Rally on!

[angelatc]

It won't. It tanked when it looked like the bill wasn't going to go through.

[Perium]

Shouldn't the question be, How much will the insurance companies stock go up on monday?

[Light]

The stock market is no longer a good indicator of economic or financial health.

[Daamien]

Stocks are assets priced in dollars which fluctuate based on events and earnings, but fundamentally will continue to rise due to the government rewarding risk-taking with cheap credit and an inflationary monetary policy.

That being said, I'd expect healthcare and insurance sector stocks to outperform the overall market tomorrow due to the passage of these healthcare and insurance "reforms" which amount to corporatism.

[Anti Federalist]

Drop, hell, Congress just passed a law that mandates you buy a shitty product from one of the largest market components.

Next you'll be forced to purchase a Government Motors car, komrade.

[TER]

DOW is up.

This is why I don't invest in the market! :o

[Anti Federalist]

DOW is up.

This is why I don't invest in the market! :o

Of course it is.

[MelissaWV]

Of course it's up.

Provisions of this bill that will actually "hurt" corporations won't really go into effect for years, and it's likely they're betting the power shift will help repeal those pesky provisions by then.

In the meantime, the companies are being forced to accept certain high-risk insureds... but there's no cap on how much they can charge. "Sure, we'll insure that kid with a pre-existing condition... for $3,000 a month extra." A lot of Joe Public sorts out there will misunderstand, and think the mandate goes into effect immediately. This is a glorious little ghost echo that's going to happen. People will go out and buy insurance they don't need because they think they're required to. There aren't a lot of people who fall into that category, obviously, but there are some... and that's just more money.

Hell, even our stock is up a little bit today, and there's a clause showing a tax or fee on medical devices specifically in the bill (for 2013).

[ChaosControl]

Of course it went up. A bill to force people to buy private insurance, corps love that.

[Uncle Emanuel Watkins]

Any guesses?

I'm thinking somewhere between 200-300 points...

As major corporations best serve tyranny by lobbying against the people on the Federal level, the small companies best serving the people and being created on the local level are put out of business by this lobbying. Yet, small businesses feed major corporations.
This is the classic example of tyranny saving its own neck by cutting off its own head.

[Uncle Emanuel Watkins]

Of course it went up. A bill to force people to buy private insurance, corps love that.

You don't have to prance down the yellow brick road to see the Wizard, Dorothy. Just ignore Washington. If you don't want to be Roman, then quit patronizing the Empire's solutions.
(Sorry about all the mixed metaphors)

[squarepusher]

Booooooshh

[Krugerrand]

Plus ... the US just picked up a huge obligation. Social Security/Medicare is already broke ... the only answer to print more money. That's inflation. Expect the DOW to go way up. Just don't expect 100 shares of your favorite mutual fund to buy any more at the inflated price than it does right now. AND - be sure to pay your capital gains tax on the "gain."

[angelatc]

Denninger is right. We saw this happen in Hawaii.



The health care companies that are getting a rocket shot today in the stock market are being bought by fools. http://market-ticker.denninger.net/archives/2109-Health-Care-Arbitrage-Obama-And-The-Dems.html

[erowe1]

Randall Halcombe says it well:


One of the promises of Obamacare has been that it would reduce health care costs. The day after the House passed the Senate’s version of health care reform, this headline says “Health Care Companies Pull Stock Market Higher.” Clearly, money is being bet on health care costs increasing, putting more money, not less, into the health care sector.

That should not be surprising. In a free market setting, individuals decide how much they want to spend on various services, including health care. With increasing government control, spending on health care will increasingly be a political decision, not the aggregation of individual decisions. Health care companies already have their lobbyists, who pull for more generous reimbursements. Consumers (the elderly on Medicare, the poor (and increasingly middle class) on Medicaid, etc.) will exert political pressures for more benefits. Political allocation of resources will surely increase costs.

Taxpayers won’t like the idea of higher taxes, already a part of Obamacare, so expect the bulk of the increased cost to push the budget deficit higher. Essentially, Congress has looked around the world and decided they’d like to shape our public sector to be more like Greece. At least, by not being on the leading edge here, we can see what’s coming.
http://www.independent.org/blog/?p=5400