Back in July, before the screaming town hall silliness of Congress’s August recess and before the slow as molasses delivery of Max Baucus’s Senate Finance Committee health care bill, I wrote a piece about how to gauge the progress of health insurance reform legislation. I pointed out that insiders on Wall Street, who have paid for unfair access to our legislators, would know ahead of the curve which way the reform would go. This way they could nearly guarantee that they would not lose money from their investments into the healthcare sector whether reform passed or was defeated. If it looked like reform was imminent, Wall Street would sell their holdings in healthcare companies driving stock prices of insurers down. If the “Street” figured reform would go down in defeat, they’d buy more of the insurers’ stocks as it would be a safe bet that the gravy train would continue for the highly profitable insurance companies. Back in July, the prices of insurance company stocks were surging. The bankers on Wall Street seemed convinced that the public option – the only serious reform device being considered – was all but dead. What does the insurance sector look like today three months later and weeks from the bill’s eventual passage? Follow me over the jump to see. Continue reading… Following the Money Part Deux
Back in July, before the screaming town hall silliness of Congress’s August recess and before the slow as molasses delivery of Max Baucus’s Senate Finance Committee health care bill, I wrote a piece about how to gauge the progress of health insurance reform legislation. I pointed out that insiders on Wall Street, who have paid for unfair access to our legislators, would know ahead of the curve which way the reform would go. This way they could nearly guarantee that they would not lose money from their investments into the healthcare sector whether reform passed or was defeated. If it looked like reform was imminent, Wall Street would sell their holdings in healthcare companies driving stock prices of insurers down. If the “Street” figured reform would go down in defeat, they’d buy more of the insurers’ stocks as it would be a safe bet that the gravy train would continue for the highly profitable insurance companies. Back in July, the prices of insurance company stocks were surging. The bankers on Wall Street seemed convinced that the public option – the only serious reform device being considered – was all but dead. What does the insurance sector look like today three months later and weeks from the bill’s eventual passage? Follow me over the jump to see. Continue reading…