March 28th, 2010 11:34 EST
Take the Recent Health Care Legislation to the Bank:Part 1 of 2
The ink isn`t even dry, and we`re already starting to find out one surprise after the next about theÃ recÃ¥nt health care legislation approved by Congress and signed by President Obama.
The government estimated that the cost to#the economy wouÃ®d be about $1 trillion, but it`s already becoming obvious that Ã´hat number will be many times higher than the prediction. The government historically undercounts or fails to count important numbers that it knows it can push on to other agencies. The $1 trillion may be the federal cost but the overall number will be more aÃ®d that`s becoming apparent already.
It`s already been announced that 153 (or so) agencies will be necessary at the federal level to administer all of the new programs that have been enccted. That means that a proportionate number will be necessary for Ã¥ach state, and probably for each county and each city. So, thousands of new agencies, with tens of thousands of new government employees will be required to manage the massive overhaul that is now law.
Although I am a beneficiary of the new law (from the perspective of the removal of the preexisting condition rules and the lifting of the lifetime limit clause) these types of government programs worry me. I wonder if insurance and health care costs will skyrocket? I also wonder how much government intervention there will be because as we all know that doesn`t work out too well. I wonder what will happen to the quality of health care for us.
What is certain is that the impact on our economy is going to be dramatic.
I read that "Caterpillar and John Deere already announced non-cash charges of $100 and $150 million, respectively, for this year based upon the impact of this bill on retiree health care costs going forward". AT&T just announced a billion dollar non-cash charge and others are announcing adjustments every day. What that means is the stock market will lower the value of these companies because cash flow is going lower. As a result we can expect the entire stock market to head lower. How many trillions is that?
At the same time, the government will be taking on employees at a rapid rate - probably more than anticipated - increasing the deficit more than anticipated. That`s probably going to be inflationary.
So, if you are one of the country`s 300 million citizens, regardless of which side of the issue you sit on, you can expect to have a stock market that is lower with growth that is slower and an economy that`s inflationary. The need to move your cash is imperative.
So, how can you monetize the opportunity that`s come about as a result of this?
Check back on Tuesday and I`ll tell you exactly what to do.
If you have an opinion or thought on this topic, please write a comment by entering your thoughts in the form below. Let us know what you think and if my thoughts resonate with yours. Our readers enjoy reading what others think. Send a link to this blog to one or more of your friends and get them to become one of our subscribers. This will help us to expand our circle of influence and allow us to share this and other great material with your friends. Thank you for being one of our loyal readers. We appreciate you and we are rooting for your success.
We are in the real estate syndication business. We invest in properties and we offer seminars to assist others in acquiring the skills needed to raise capital (syndicate capital) to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether it is for single family, multi-family, commercial or another kind of investment property. For full information, go to www.syndicatefast.com.
Our real estate company is Bullseye Capital (www.bullseyecap.com), a full service real estate company that supports owners and buyers of real estate assets with brokerage, leasing, property management and mortgage services. We also provide investment opportunities to accredited investors who want to take advantage of the opportunities.
About Joel G. Block, President of Growth-Logic, Inc. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and astute investor. To bring Joel into your company, please visit http://www.joelblock.com.