Obama Health Care and Your Money!

I don't think there is any clearer perspective as to why the Democrats run Washington, and the Republicans have become the party of loyal resistance than Health Care. With the Health Care debate really starting to heat up for the summer, President Obama is already starting to get the mud from both ends of the isle.

I couldn't help, but laugh last week when I was watching Sean Hannity interview Rush Limbaugh, and they talked about socialized health care and all the philosophical reasons why it shouldn't happen. They didn't even seem to get what their counterparts on the left (who see socialized health care as a moral imperative) can't get. The USA cannot afford it!


I think President Obama gets it and, it should be the screen saver on his teleprompter. The US dollar has been in a down trend for years because of our massive deficits and we are already spending money like a 20 year old with their first credit card. There really is no philosophical or ethical debate here. Socialized Health Care will lead to a national bankruptcy. We cannot afford our current social programs like Medicare and Social Security. The last thing we need is another one.

As I listened to President Obama speak yesterday in regards to Health Care and tuned into all the Sunday political shows, it is obvious that he wants a public health care option and he is going to get it!

First of all, there are not enough conservatives to stop him and moderate republicans / democrats will see this as something that should help make a better playing field for an industry where costs are just going through the roof. Some people fail to see how this has been a huge weight on the economy since their employer pays for the majority of their care.

Small businesses need this (where the majority of jobs are created) and it may lead to some pay raises which will help create a stronger consumer.

Who are the winners and the losers in all of this?

Health insurance companies are losers here, with government being more of a player in their market, many of these stocks like Aetna (AET) and United Health Care (UNH) have not fared well at all. The sector that used to be defensive has become very vulnerable. This sector may be chock full of good stocks to own in a couple of years after everything shakes itself out.

Pharmaceuticals making generic drugs are winners here. The Obama plan loves generic drugs, and more and more people love the lower costs of generic drugs. The Big Drug makers like GSK (GSK) and Pfizer (PFE) are reacting. GSK has signed a deal with an Indian generic drug maker, and Pfizer is moving in this direction as well. Companies like these have a lot of clout in the medical community, when they start to go generic it can really be a self fulfilling prophecy.

With Hockey and Basketball seasons over, I look forward to seeing how all of this plays out over the summer. Politics and Business are great sports too.