Thursday, January 23, 2014
Insurers downgraded on ObamaCare fears
Moody’s announced Thursday it was downgrading its outlook for health insurers from stable to negative based on uncertainty related to ObamaCare.
The credit rating agency cited an unstable environment because of the healthcare law’s difficult rollout, and projected that insurers would earn 2 percent less than forecast in 2014.
“While we’ve had industry risks from regulatory changes on our radar for a while, the ongoing unstable and evolving environment is a key factor for our outlook change,” Moody’s Senior Vice President Stephen Zaharuk said in a statement. “The past few months have seen new regulations and announcements that impose operational changes well after product and pricing decisions were finalized.”
The Moody’s report also cites the slow enrollment of young people into ObamaCare as a reason for the downgrade.
“Uncertainty over the demographics of those enrolling in individual products through the exchanges is a key factor in Moody’s outlook change,” the ratings agency said.
Citing statistics released by the administration, it noted that so far about 24 percent of enrollees are between the ages of 18 and 34, while a target of 40 percent may be necessary to keep premiums from rising in the future.
It said the 24 percent of young people enrolled so far is “well short” of the 40 percent target.
Moody’s also said it was worried that insurers’ premium calculations might not be enough to cover the industry assessment tax that begins in 2014.
White House rejects review board finding that NSA data sweep is illegal
The White House on Thursday disputed the findings of an independent review board that said the National Security Agency’s mass data collection program is illegal and should be ended, indicating the administration would not be taking that advice.
“We simply disagree with the board’s analysis on the legality of the program,” White House Press Secretary Jay Carney said.
He was responding to a scathing report from The Privacy and Civil Liberties Oversight Board (PCLOB), which said the program ran afoul of the law on several fronts.
“The … bulk telephone records program lacks a viable legal foundation,” the board’s report said, adding that it raises “serious threats to privacy and civil liberties” and has “only limited value.” The report, further, said the NSA should “purge” the files.
The president did not go nearly as far when he called last week for ending government control of phone data collected from hundreds of millions of Americans.
Carney claimed the president, in his address last week, did “directly derive” some of his ideas from the board’s draft recommendations. But he made clear that Obama does not see eye to eye with them on the legitimacy of mass phone record collection.
“The administration believes that the program is lawful,” he said.
Wednesday, January 22, 2014
IP address does not prove online piracy, US judge says in landmark ruling
A US federal judge in Washington wrote that a suspected internet pirate should not be prosecuted solely because his computer’s IP address was identified by a film studio. The landmark opinion may tip the fortunes of defendants in similar situations.
The Hollywood executives behind the movie ‘Elf Man’ filed a lawsuit against hundreds of people, alleging that they were guilty of copyright infringement because their internet protocol (IP) address was found to have illegally downloaded the film. An IP address can be likened to a computer’s online fingerprint; each is unique to the machine it originates from.
Copyright holders seeking to take offenders to court often put fake movie files online, record the hundreds or thousands of IP addresses that download it, and then provide that information to the courts in an attempt to identify and sue hapless users on the other side of the screen.
The studio argued that “the defendants either (a) downloaded the pirated film themselves, or (b) permitted, facilitated, or promoted the use of their Internet connections by others to download the film,” according to TorrentFreak.
Washington District Judge Robert Lasnik said this week that the rationale is insufficient, in part because it begins with the assumption of guilt. Ruling on a motion to dismiss the claim, Lasnik sided with the defendants because the conditions described in complaint section b were overly vague.
“[The movie studio] has actually alleged no more than the named defendants purchased Internet access and failed to ensure that others did not use that access to download copyrighted material,” the judge wrote.
Lasnik also said that there was no proof that the person who could wind up facing a lawsuit was in fact the person who chose to download the copy of ‘Elf Man.’
Earth to Bill Maher: Edward Snowden Isn’t the Crazy One
For Maher and too many likeminded people, anyone who doesn’t view the government as a benevolent force for good is a tinfoil-hat-wearing kook who believes all civilian life is the target of a massive conspiracy involving the government, secret societies, aliens, etc. Thus Maher’s retort, “Everyone in the government isn’t out to get you.”
That’s what’s known as “framing the debate.” You’re either with Bill Maher and President Obama or you’re with the kooks. You may also be somewhere in the middle, where Maher apparently places Snowden. It completely ignores the many other perspectives one might have, including that of most libertarians.
Libertarians don’t believe that the people who work for the government are evil. It’s the institution of government itself, a monopoly on the use of force that can martial the resources of the entire nation. That kind of power is dangerous even when used by good people with good intentions.
This isn’t some new age idea cooked up by pot-smoking libertarians in the 1970s. It’s a founding American principle and the reason for the entire Bill of Rights. It was summed up best by Thomas Paine in the pamphlet credited with convincing most American colonists to support independence from Great Britain:
“Society in every state is a blessing, but government even in its best state is but a necessary evil; in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities is heightened by reflecting that we furnish the means by which we suffer.”
Wall Street adviser: Actual unemployment is 37.2%, ‘misery index’ worst in 40 year
Don’t believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.
In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.
Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn’t being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.
“The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more.
“Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work. Policies that remove the barriers to employment, thus decreasing this number, are obviously beneficial,” he and colleague Megan Russell in their new investors note from their offices in Charlottesville, Va.
They added that “officially-reported unemployment numbers decrease when enough time passes to discourage the unemployed from looking for work. A decrease is not necessarily beneficial; an increase is clearly detrimental.”