> I can accept and even admire your libertarianism but
> you cannot possibly think we're onto something good
> here, can you?
I think the prohibition on calling someone a 'cop' on this list ought to extend to calling them 'libertarian' too (which I'm not, thanks very much). I agree: the way health 'insurance' is 'practiced' here in the US is a formula for disaster and ought to be fixed ASAP. My (admittedly catty) point is that this article provides more evidence that the broadening of credit availability (secured and not-so) over the past decade or two is pretty far down on the list of important issues that 'cause' personal financial ruin. And very high up (if not on top!) of the list of things that have led to vast numbers of people increasing their standard of living.
Doug chirps up:
> The metaphor that Elizabeth Warren often uses is that debt is like
> a heavy backpack - ok if you're walking on smooth terrain, but a
> disastrous burden if the ground gets rough and you trip.
The difference between those who live in the capitalist world who thrive and those who merely survive is capital spending, which, as a matter of course, must be financed: most of us can barely buy a car with cash, let alone a house. For most of the last chapter of this story (say, 150 years?), access to capital (in the form of credit) was limited to corporations and (some!) white men. That has dramatically changed in the last decade or two, mostly to the good, and you still haven't shown a positive correlation between these financial innovations and personal ruin.
Yes, it's a backpack; but without it, you don't even leave the sofa. Some people stumble in the woods (and some even have to get airlifted out!), but most everyone is better off for having had the fresh air (Ok, stop me before I hurt someone with this metaphor extension).
> So if you get sick and face medical bills and work interruptions,
> then the debt service that seemed just on the right side of ok
> when everything was going well suddenly becomes disastrous.
I think it's pretty clear from the current story forwarded that, in this scenario, it's the medical bills and your so-called 'insurance' that are the root of the problem and not your debt service: have that same problem and a "safe" (read: not nuts) mortgage (or no mortgage at all!) and you find yourself in just about the same position: sick and out of work (note that those who get hit with this scenario really don't give a hoot about their financial position: ruined is ruined).
Note that you can easily (and without scrutiny) insure against the event risk of not being able to pay your mortgage and credit cards, but you cannot in many cases do the same for the event risk of not being able to pay for your health care . . .
All I'm saying: let's keep our eye on the target(s).
/jordan