The Money Of Health Care
1 Samuel 25:6 Say to him: 'Long life to you! Good health to you and your household! And good health to all that is yours!"
What is really going on within the health care industry? I think I need to know more as I examine health care reform. It is important that I hear from some not in politics. The rhetoric around politicians sometimes clouds the fundamentals. I listened to James Chanos, president of Kynikos Associates, on CNBC's Squawk Box discuss his perspective and why he's shorting health care.
short selling
What is really going on within the health care industry? I think I need to know more as I examine health care reform. It is important that I hear from some not in politics. The rhetoric around politicians sometimes clouds the fundamentals. I listened to James Chanos, president of Kynikos Associates, on CNBC's Squawk Box discuss his perspective and why he's shorting health care.
short selling
Chanos is an Obama supporter as well as being a hedge fund manager. Money is his daily game and he is well versed on the health care industry. A couple of good points that I found in his remarksDefinition Profiting from an anticipated drop in the price of a commodity, financial instrument, or security by (1) borrowing and selling it now, or by (2) selling a firm promise (futures contract) to deliver it on a later date at the current (or a specified) price. In either case, the seller counts on buying the item at a cheaper price to return (with a fee) or deliver it. A short seller is a 'bear.' Also called selling short.
- The health care industry currently has a profit margin two - three times that of the S&P.
- Irrespective of what happens in the political arena, these profit margins will be reduced.
- The Health Care industry revenues are more than 50% from the government and, he believes, without accountability.
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