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Faces of Economic Death

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Posted on Dec 24, 2010

By David Sirota

If you’ve turned on the tube these last few weeks, you’ve probably been a collateral casualty of the biggest televisual war of attrition in recent memory. No, I’m not talking about the scripted skirmishes between cable channels, nor am I referring to the Battle of Zombie Talking Points that ate most of our brains during the election. I’m talking about the now never-ending throwdown between two of the most in-your-face salespeople our mediascape has ever manufactured: Geico’s unnamed gecko and Progressive Insurance’s chipper saleswoman, Flo.

No doubt, you know them both—the green lizard’s smile and cockney accent feign earnestness while the aproned Flo goes for the same effect through the saccharine enthusiasm of an “Office Space” character. It’s mildly cute, but don’t be fooled: As the best-known avatars of the insurance industry, these two are aggressively competing for our cash through re-education-camp levels of repetition, hoping to harass us into buying their product.

Certainly, there’s nothing new about hard sells from TV charlatans. But these two represent something different, something apocalyptic—and I say that not merely because their maddening ubiquity has driven me to the brink of insanity. I say it because they are peddling the kind of commodity that offers little tangible worth, waging a fight that promises no valuable innovation, and representing a larger insurance and finance sector that’s hollowing out our economy.

Think about it: The gecko and Flo do not embody the capitalist vision of private competition fostering innovations that serve the greater good. They are not, say, two private manufacturers grabbing for customers in an entrepreneurial competition that will result in major technological advances.

Instead, the gecko and Flo front an insurance and related banking sector that is a government-supported endeavor—car and health insurance are mandated and/or subsidized by the state, and deposits are federally guaranteed. This sector, which pools collective resources for (theoretically) collective benefits, provides services that are crucial to an economy, but that produce little added value beyond their baseline functions—and that’s why the sector was once regulated like a utility.

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Of course, such regulations were eviscerated in recent years, with the promise that competition would encourage self-regulating safeguards and value-added innovation. But as the AIG collapse, the Wall Street meltdown and periodic insurance premium increases exemplify, the effect has been the opposite. Rather than building real wealth for society, unregulated competition between the geckos and the Flos in the insurance and finance sector has often meant fine-print terms like “recission,” esoteric maneuvers like “securitization” and acronym-cloaked schemes like CDOs—that is, ever-more complex “innovations” to reduce customer payouts, increase fees, maximize private profit and limit executive liability, all under the TV-commercial guise of allegedly lower prices and better consumer returns.

In the global economy’s increasingly fierce fight for genuine value and better living standards, this might not be so problematic if America’s wealth-creating sectors (i.e., making things or providing valuable services) remained substantially larger than wealth-cannibalizing sectors like insurance and finance. But since the 1980s’ decline of manufacturing, the insurance and finance sector has doubled its share of gross domestic product, hitting 8 percent last year. That’s twice as large as both the construction and information sectors—and ongoing taxpayer bailouts promise to exacerbate the asymmetry even more.

This is certainly great for insurance companies—for example, it provides them excess billions to buy an absurd amount of ads. For the rest of us, though, the growing imbalance between real wealth creation and worthless paper pushing is bad news—and that’s why the gecko and Flo are so deeply disturbing. More than just the moment’s most annoying shills, they are the cheeky visages of our nation’s long-term economic decline.

David Sirota is the author of the best-selling books “Hostile Takeover” and “The Uprising.” He hosts the morning show on AM760 in Colorado and blogs at OpenLeft.com. E-mail him at ds@davidsirota.com or follow him on Twitter @davidsirota.

© 2010 Creators.com


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oddsox's avatar

By oddsox, December 27, 2010 at 4:14 pm Link to this comment

Wow, we do get off-topic here, don’t we? 
No hypocracy: I do, too, sometimes. Ok, oftentimes.
Although, unbelievable some of the postings:  What next, UFOs, Nazi-Bushies, Skull & Bones conspiritors? ... oh, wait, that’s on Sheer’s Assange thread…. don’t wanna live in that world, thank you.

Hey, people, Capitalism is alive and well, it’s just moved to India and China.  Won’t come back to the US until it’s invited.

Inherit the Wind, I think you’re right about GOP/2012—it won’t be Harold Stassen (never was, HA!)  But nothing else is certain.

I wonder what’s really going on w/Sarah Palin.
She’s not for-real any more than her friend Kate Gosselin, but she’s being propped up by both Left AND Right.
Is is that the mainstream media just HAS to have a face to put on conservatism and they can’t stomach Rush Limbaugh’s mug anymore?
As for the Repubs, I guess she’s Money to them, that makes sense from their point of view.  And sex appeal—that’s rarely associated with Repubs.

But come on.  She’ll get a plank or two on their platform for the TP, but the Repubs can’t be dumb enough to actually nominate her, can they?

On the other hand, they can’t be so SMART as to use Sarah Palin as a cash-cow & decoy to draw media fire away from no-names like Mike Pence, Paul “Much-Younger-Than-Obama” Ryan or the Newt-Huckaby-Romney-Barbour types until the primaries. 
Could they? 
Nah…

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By ocjim, December 27, 2010 at 3:04 pm Link to this comment

Sirota is just saying that with unrestrained capitalism that the mediocre is pushed by big money to drive out the good and productive. Less effort and more control favors the sterile and inferior—even true in politics, given Bush and Palin—over the fruitful.

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By garth, December 27, 2010 at 3:03 pm Link to this comment

“Inherit The Wind, December 27 at 7:30 pm Link to this comment

(7:30 Link to this comment?  I posted it at about 12:30 on December 27th.  It is now 1:51 ESDT.) 


You say, “No Garth.”

“No, Garth. The Supreme Court will rule as the Republican Party, as expressed by Mitch McConnell and John Boehner, wishes.  And they are DETERMINED to kill the Obamacare plan.

Patreaus, eh? I feel like one of those start-of-the-season football pools where you bet odds on who will win the Superbowl.  I think Palin’s going down and Hucka-chuck, Mitt Romney and Slimey-as-a-Newt will be the players. Of course, my predictive ability of presidential candidates is pretty lousy.  About the only safe bet used to be Harold Stassen to run for the GOP nomination but he’s long gone now.”

I say, it ain’t that simple. 

I say Yes, Garth. 

Because it’s like a fixed raced, a fixed fight.  The ones who have the dough say what’s going on in the show.

And Petraeus is their man.  Unless they are willing to take the calculated risk of re-ecting the un-electable schmuck, Obama, again.  And that is entirely possible, Chutzpah being Chutzpah. 

But I am willing to stand behind what I’ve read about, what is really going as reported by the honest reporters who have the balls to put it on the Internet.  That is, while the Internet is still ours.

Those days might be going as well.

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By Inherit The Wind, December 27, 2010 at 2:30 pm Link to this comment

No, Garth. The Supreme Court will rule as the Republican Party, as expressed by Mitch McConnell and John Boehner, wishes.  And they are DETERMINED to kill the Obamacare plan.

Patreaus, eh? I feel like one of those start-of-the-season football pools where you bet odds on who will win the Superbowl.  I think Palin’s going down and Hucka-chuck, Mitt Romney and Slimey-as-a-Newt will be the players. Of course, my predictive ability of presidential candidates is pretty lousy.  About the only safe bet used to be Harold Stassen to run for the GOP nomination but he’s long gone now.

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By garth, December 27, 2010 at 1:58 pm Link to this comment

The arguments to rally support for Obama’s Health Insurance mandate are unnecessary and reveal a much more insidious underplay.

The Supreme Court WILL rule that the mandate is Constitutional, keeping with its ideological support for all things corporate, and on the latter point, the faux support for an un-electable Obama is just a move to suppress a challenge from a Democratic challenger who might be a man of unquestionable good will.

Even that might not amount to a hill of beans because the candidate who is now being groomed for the Presidency is General “Wring-My-Hands” Petraeus.  The future war hero with a PhD from Princeton.  The one everyone is crediting with ending the war in Iraq.

Petraeus is the man who’ll go to war with Iran at the drop of a hat and save the bacon before it goes into the fire. (Well, maybe he’ll need a false flag attack on the US aided and abetted by Israel.)  But he’s the guy that the ‘Moneyed’ interests wants. 

The Supreme Court argument about whether the Constitution is or isn’t a living document is misstated.  The question is:  Is the Constitution a dead document?  An archival piece of paper?

The Supreme Court voted to take the homes away from a community by the sea in Connecticut and hand it over to Pfizer Drug.  No, it wasn’t the Fascist ideologues, Scalia, Roberts et al who ruled that-a-way.  It was the so-called Liberal Wing with Kennedy as the swing vote.  They are the ones that threw those people out of their homes and gave the seaside property to Pfizer. 

Irony of all ironies, once Pfizer got the land they decided not to build on it after all.  They gave some half-assed excuse, and the story went down the memory hole.

My guess is that the land will be used as a site for future gatherings of the wealthy to watch yacht races.  That’ll add symmetry because it was once a site where neighborhood lovers would once park to watch the submarine races.

As a pet peeve, it irks me to read aspersions to previous revolutions.  Allusions like, ‘genteel peasant’, ‘sans culotte’, and ‘lumpen proletariat’.  They sound oh so 60s and rather bourgeoisie.

I remember a substitute teacher I had when I was in elementary school, a Mrs. Marx from Swampscott, MA, who told us urchins in Lynn, MA while seated behind the teacher’s desk that only rich, educated people should hold public office.  (I’m not shitting you.)

Her reasoning was thus:  Rich, educated people have the time and the education to think about such topics.  Topics that deal with the weighty issues of the day.  Poor, uneducated people do not.  To her, it was as simple as that.

A little learning is a dangerous thing. 

What profiteth a man if he gives up his sense of self as a communal human being for the fleeting pleasures of uniqueness and a few sheckels?

The empty drum can easily be detected.

 


All these allusions to the French Revolution

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By ardee, December 27, 2010 at 7:27 am Link to this comment

Arraya, December 26 at 6:32 pm

You are ,obviously, entitled to your own opinion. But the examples you cite are incorrect and the timeline fictional.

The dispersing of the vast tracts of farmland in a great Agrarian movement is not capitalism and the railroads , while certainly a good example of the abuses of capitalism trailed the great land rushes as might be expected. The transcontinental railroad system first linked east and west in ,I believe, the 1860’s.

I believe, as I stated earlier, that capitalism has its place in our economy, as does socialism for that matter. The key is the control of the baser instincts that rise to the fore.

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By Inherit The Wind, December 26, 2010 at 11:30 pm Link to this comment

Gee, ThomasG…I’ve made this SAME point repeatedly and been pooh-poohed.

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By ThomasG, December 26, 2010 at 8:25 pm Link to this comment

If Health Insurance is Constitutionally Unlawful as ruled by the Supreme Court http://articles.cnn.com/2010-12-13/politics/health.care_1_health-insurance-health-care-federal-judge?_s=PM:POLITICS  then Transportation/Automobile Insurance is also Constitutionally Unlawful.

Transportation Insurance was not required to insure the risk of the Colonists during the colonization that occurred on the East Coast, and later as the settlers moved from the East Coast to the West, and if Transportation Insurance had been required, it would have been of primary importance to the Native People winning the war to maintain sovereignty over their nations and driving back the invading colonists coming in hoards of uninsured Conestoga Wagons.

Today, at present in the 21st Century, Transportation Insurance is not a necessity and it is used to protect the interests of those who have insurance by forcing those who do not have insurance to insure risk that is not their own.  Those who have risk to insure should rightfully insure the full amount of their own risk and not whine and expect those who have less to insure risk that is not their own.  The same is true for Health Insurance.

Health Insurance, Automobile Insurance and all other forms of insurance should be by law formulated upon a single risk pool and each person in that “one” single risk pool should make his/her own choice with regard to insuring his/her risk based upon that “one” risk pool that is inclusive of the nation as a whole— to do otherwise is a scam, a Ponzi Scheme and criminality under cover of law.

Those who have more and have vastly more risk would pay vastly more to insure against their loss of what they have, and those with less would have less to insure and the choice of self insuring their own risk without the responsibility for the risk of others.  And, yes, this formula leaves out “genteel peasants” who are living on credit using property that is not their own, and this form of insurance would require the owner of capital assets to bear the cost of insuring his/her own property, rather than passing the risk to “genteel peasants” who think they are Middle Class and are too unaware, ignorant, and/or greedy to know or understand the difference.

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By garth, December 26, 2010 at 5:03 pm Link to this comment

Geico cannot sell insurance in MA.  That should tell you just how crooked their buckeye outfit is.

What the ads tell me is that they are in serious need of cash as in, sell the sizzle not the steak.  They’ve got nothin’.

Drug pushers tell you now only what the pill will do ‘to’ you not ‘for’ you.  Skip the therapy get right to the endgame.

I read recently that the Anglo and American financiers are still kyting $1.5 quadrillion in CDS and other investment schemes, and they are afraid that they aren’t going to make it to the door before the roof falls in.

So, they go looking for easy money wherever they can get it.  To help them out the neocons are looking stronger and they are offering a way out.  Zbig’s plan looks bad, not working fast enough.  All out bombing looks good. 

An invasion of Iran looks more imminent than implausible.  All the intelligence is shifting around their cockamamie policy, but we’ve heard all that before. 

Wars always are a big money maker, not too mention the profits from the rise in the price of oil, and also a decrease in population.  They like to win on many fronts if not all.

One peculiar note:  Some of the Israeli military have taken up residence in Saudi Arabia.  Where’s Osama bin Laden?  I thought that was what blew his mind: to have Pappy Bush send American troops to Saudia Arabia.

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By Arraya, December 26, 2010 at 1:32 pm Link to this comment

““Capitalism works well for a nation only, repeat only, when it is carefully
regulated to eliminate the abuses that are a part and parcel of its nature.”“

No, it does not well maybe marginally in some instances.  It’s gotten a few huge
lucky breaks since it’s inception. The first 100 years of american-style
capitalism was marked by the largest government handouts in history. The
giving away of hundreds of thousands of sq miles of land for farms and
railroads as well as free plentiful resource deposits. Of course, we had slave
labor as well. Then came capitalism’s next big break in the late 19th century.
Which was oil and the industries and technologies it spawned. Not to mention
the ability to do tremendous amounts of ever increasing work from ever
increasing amounts of energy.  After that the destruction of Europe was great
for America.  But capitalism has zero future.  The lefts obsession with
regulating it is as delusional as the rights thinking less regulation is the
answer.  Now that colonialism is over(land theft and slavery) as well as ever
increasing amounts of energy(the ability to do more and more work) - People
need to start thinking of plan B

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By ardee, December 26, 2010 at 1:19 pm Link to this comment

The seemingly obvious, yet always ignored by the right wing, evidence that deregulation and the absence of regulation always lead to abuses by those corporations freed from oversight. Always.

That those spokespersons on the right always blame government for the greed, amorality and callousness of the private sector seems a very shaky ground upon which to build an economic system. Perhaps that is why our economy is in the dumper currently. The usual suspects may ignore the actions of Enron, AIG, Goldman Sach, Bank of America, Halliburton et al. That doesn’t mean that the rest of us should as well.

Capitalism works well for a nation only, repeat only, when it is carefully regulated to eliminate the abuses that are a part and parcel of its nature.

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By Arraya, December 26, 2010 at 1:13 pm Link to this comment

The US Empire is entering late stage capitalist imperialism and all that entails:
export the proletariat for cheap labor, constant resource wars, more and more
militarization of the economy and society, rapid growth of a bloated and corrupt
financial capitalist over-class and maintenance of a heavily propagandized police
state( a police state is a huge industry btw) with constant economic crisis and the
commoditization of everything.

Eventually the system will alienate the majority of the population under it’s current
logic, one way or another.

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By alturn, December 26, 2010 at 12:28 pm Link to this comment

What Sirota says needs to be said more and louder.

“This creed of commercialization is driving our society in suicidal directions.

A time bomb. Commercialization is more destructive than any nuclear bomb.

The quality of commercialization is greed, and it will affect all nations.”
- World Teacher Maitreya through an associate 1989-1993

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By glider, December 26, 2010 at 10:18 am Link to this comment

Fat Freddy,

I happen to go along with Ellen Hodges analysis of our current banking system.  I am not quite sure why you find nationalizing the banking system and allowing for sovereign control of our own currency to be problematic and “ridiculous”.  I will chock it up to ignorance at this stage.  It is how we happened to have financed our own revolution and the Civil War and how Germany created its WWII might.  Your described preference is quite short on detail and worthless for any reasonable appraisal of its value.  Are you a proponent for continuing the “fractional reserve” banking scam and the Federal Reserve Banking Cartel? 

Regarding “insurance”.  This ain’t fucking rocket science!  and is in my opinion compatible with a nationalized banking system.  Insurance is all about spreading risk.  It is inherently best executed in a socialist rather than capitalist fashion.  Do all this and banking correctly and perhaps we can start to think about getting rid of our income tax.

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By Inherit The Wind, December 26, 2010 at 9:13 am Link to this comment

FF:

I find your two posts fascinating, the first for an astute analysis, the latter for an interesting quote for the second most important economist of the age after Adam Smith, David Ricardo.

However, you forget: The insurance companies don’t simply spread risk and charge higher premiums to those with higher risk levels, they also invest their cash to increase their revenue, and, if possible, keep rates low enough to attract more who want to be insured.  Yet they invested so recklessly, and stupidly (see AIG) that they essentially destroyed their “endowment” while accelerating the feeding frenzy.

We live in a stupid nation these days, that refuses to learn from past failures and successes, instead creating fantasy worlds in which, like Ayn Rand fiction, bankers’ actions out of self-interest are rational.  But they aren’t. Business-runners’ actions out of self-interest aren’t rational either, as they are rewarded by standards that don’t actually improve the business.

The recent rounds of de-reg of banks and lack of oversight of them directly flies in the face of what we should have learned in the 30’s, but, more importantly, from 1987.  It was no different, just it was commercial and investment banks when before it was S&Ls;.  And, of course, the repercussions were far greater.

But we are stuck in the rut of post-Reaganism where all government regulation is “bad”, all de-reg is “good”, and the suffering of ordinary people as a result of business collapse is “their own fault”.  When unemployment refused to come down in the early ‘80’s (despite redefining the statistic to make it look better), RR was forced to bite the bullet and accept tax increases.  That, combined with Volcker’s policies at the Fed helped the economy to recover and unemployment to fall.  Naturally, the GOP loudly claimed it was all due to tax decreases and deficit spending….

And we are back where we started, only worse.

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By Fat Freddy, December 26, 2010 at 8:08 am Link to this comment

[Central] Bankers are thieves.

The government has been bailing out the banks, and providing cover for them, at least, since 1814 (when they allowed the banks to suspend specie payments). The National Bank Act of 1844 is the worst piece of Legislation ever written, except, maybe, for the Legal Tender Laws.

“Free banking”, is the only real solution to keep the banks honest and fair.

a regime where note-issuing banks are allowed to set up in the same way as any other type of business enterprise, so long as they comply with the general company law. The requirement for their establishment is not special conditional authorization from a government authority, but the ability to raise sufficient capital, and public confidence, to gain acceptance for their notes and ensure the profitability of the undertaking. Under such a system all banks would not only
be allowed the same rights, but would also be subjected to the same responsibilities as other business enterprises. If they failed to meet their obligations they would be declared bankrupt and put into liquidation, and their assets used to meet the claims of their creditors, in which case the shareholders would lose the whole or part of their capital, and the penalty for failure would be paid, at least for the most part, by those responsible for the policy of the bank. Notes issued under this system would be “promises to pay,” and such
obligations must be met on demand in the generally accepted medium which we will assume to be gold. No bank would have the right to call on the government or on any other institution for special help in time of need. . . . A general abandonment of the gold standard is inconceivable under these conditions, and with a strict interpretation of the bankruptcy laws any bank suspending payments would at once be put into the hands of a receiver.

The Rationale of Central Banking and the Free Banking Alternative (1936), Vera C. Smith

http://www.econlib.org/library/LFBooks/SmithV/smvRCBCover.html

Another interesting quote from 1821

You state in your letter that you find it difficult to comprehend, why persons who had a right to demand coin from the Banks in payment of their notes, so long forebore to exercise it. This no doubt appears paradoxical to one who resides in a country where an act of parliament was necessary to protect a bank, but the difficulty is easily solved. The whole of
our population are either stockholders of banks or in debt to them. It is not the interest of the first to press the banks and the rest are afraid. This is the whole secret. An independent man, who was neither a stockholder or debtor, who would have ventured to compel the banks to do justice, would have been persecuted as an enemy of society.

- David Ricardo

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By Fat Freddy, December 26, 2010 at 7:48 am Link to this comment

To compare auto insurance to exotic synthetic investment instruments is one of the most ridiculous things I have ever heard. Almost as ridiculous as glider‘s suggestion for a nationalalized bank. Don’t we have enough problems? Perhaps you would like to nationalize auto insurance, as well. We may as well let the government provide all of the goods and services we need and desire?

While I agree that boundless speculation does not create any real “wealth” or “value”, but insurance is a “necessary evil”, especially liability insurance.

This is apples and oranges. Any person with half of a brain can see that. If you want to make a “connection”, here it is:

Access to an endless supply of cheap, easy money, and choking regulations that are written by the corporations to squeeze out smaller competition. This “corporate consolidation” is taking place across the entire spectrum of business and finance. We are a society based on debt, and the Central Banks feed the TBTF National Banks who then feed the monopolistic corporations. The large corporations, and the wealthiest individuals benefit the most from all of this cheap easy money, while the rest of the population gets stuck with all of the price inflation. Inflation doesn’t affect the wealthy, because they can just borrow more money. Can you? Of course not. You and I must borrow on “principle debt” meaning we must pay back the principle, as well as the interest. Corporations, on the hand, borrow mostly on “interest only”, and never pay any principle, they just roll over the debt every 5-7 years. Then there’s “speculative debt”, which is the worst. It is also known as “Ponzi debt”. That’s when a bank, or investor borrows money and invests it, and uses the future value of the investment to secure the loan, with no means to pay the principle or the interest at the time they borrow the money. In an inflationary monetary scheme, it usually works out. But all of that “boom” money eventually goes “bust”. Too much speculation drives asset prices artificially high, and assets will always return to their par value, eventually.

Don’t get me wrong. Some speculation is necessary to help determine value. It’s when too much speculation, which is fueled by too much easy money, gets into the market, that creates the problems.

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By glider, December 25, 2010 at 11:52 pm Link to this comment

Right on article.  The only real “financial innovation” we need is to nationalize the banking system, restore U.S sovereignty over its own currency, and return interest payments from the banking class to the people.  Bankers are thieves.

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By oddsox, December 25, 2010 at 5:27 pm Link to this comment

G.Anderson, agree with you:
Too-Big-to-Fail is Too-Big-to-Begin-with. 
Break up the large banks and insurance companies, as w/AT&T in 1985, and the beef, oil, and railroad trusts of 100 years ago.

Given his feelings on the subject, surprised Sirota didn’t mention Mr. Mayhem.
http://www.youtube.com/watch?v=bIoi-oCaFHs

Don’t believe the auto insurance providers are much of a problem, though.
The industry is still heavily regulated. 
Auto insurers typically hold a 1%-2% profit on each premium dollar collected (playing about 80% back in losses and their associated costs).
But sometimes they get “lucky.”
So just in case, many states have excess profits statutes in place that mandate a return of premiums or lower rates.

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By G.Anderson, December 25, 2010 at 3:39 pm Link to this comment

Well, from the title of this, I supposed it was going to go into the details of the economy’s continued death, the bail outs, the tax give aways,  the increase in food stamp use, the increase in poverty, loss of jobs.

Maybe even Fords announcement that it’s moving production over seas, or Dells investment in manufacturing in China…

Maybe how people are being squeezed more and more every day, through premium increases in their insurance, the cost of food inflation, gas prices… in short the total collapse of the financial structure of this country… No such luck…

If your talking about insurance companies David, the only thing that makes sense is anti trust litigation by the justice department. I suggest, that it might be good to review, the history of anti trust litigation, and how breaking up the too big to fail insurance companies, is a much better option than continuing to let them and their lobbyists run things.

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By rico, suave, December 25, 2010 at 2:28 pm Link to this comment

ITW:

Doh!! Yer right!

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By purplewolf, December 25, 2010 at 12:57 pm Link to this comment

Read the underwriting for these car insurance companies, there are more ways to wiggle legally out of paying for a claim you may turn in than you can imagine. And why do they always go up on your rates every 6 months even with no tickets or accidents or claims? 

Because as one time I was considered an artist and sold on the road-more of a hobby and not my full time work of nursing, if I was in an accident, even if I was only going to the store or doctor, the insurance company would look at my vehicle with all my art stock that is stored in it and decide to refuse to cover me as I am an artist. Almost the same excuse if as part of my job I had to transport my patients to a doctor and was in an accident, they can refuse to pay as if you use your car to transport patients this way. If I take my kids to a soccer game and have the neighbors kid in the car also to go to the same game to play and have an accident, because I have the neighbors kid in the car, we are not covered. So why do we have to pay for the extras to cover any passengers when they really don’t do so?

I used to take my neighbor’s child to a church until I learned that I would not be covered in case of accident, the church was quite aways from where we lived and his family didn’t have a car. I did not attend this church. So if you think you might be doing a good deed or helping someone out by giving them a ride, think again, you may end up being the one who looses.

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By jspts, December 25, 2010 at 11:56 am Link to this comment
(Unregistered commenter)

can speak to david’s article as a former insider for several years @ progressive. First, Peter Lewis is no longer ceo of progressive! In ‘03 he relinquished the ceo slot and turned it over tothe bean counters. This marked a fundamental change in the focus of the company from customer and employee frendly to ” bottom line” maximization of profits, bonuses for higher highers, etc.Bottom line for me as a property & casualty professional for many years, you counln’t give me progressive insurance or geico either

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By samosamo, December 25, 2010 at 11:30 am Link to this comment

****************


Proud to say I’ve never seen or heard ‘flo’ and
wish is were so with that stupid lizard. What gets
me is the continual use of the cartoon world in
propaganda advertizing to catch people’s
attention. Now that clearly shows me that the
msm media has more control than is good for the
country and their well cultivated and fertilized
dumbstream garden of americans prove.

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David J. Cyr's avatar

By David J. Cyr, December 25, 2010 at 9:41 am Link to this comment

I don’t have cable. The only TV channels I get are the evil twins… FOX and PBS.

Both are corporate subsidized by the fossil-fuel industry’s incessant greenwashing of its desperately insane attempts to maintain our fossil-fuel addiction until we all overdose on CO2.

FOX has a mission to maintain ignorance, and PBS’s News Hour ever earnestly endeavors to stupify the intelligent. Election results regularly provide positive proof that both succeed.

The fossil-fuel industry’s TV advertising is literally selling people into environmental death.

http://www.un-naturalgas.org

http://www.withouthotair.com

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By SoTexGuy, December 25, 2010 at 7:30 am Link to this comment

It’s as bad as Sirota says.. the advertising cycles, ever increasing, ever more
shrill.. and now digital so they can be so closely synchronized you can’t flck
them away. Noxious! And they are reeducating me for sure.. teaching me to
turn off the tube and take that extra walk, toss the fuzzy football for the dog..
get back to that compendium of Rafael Sabatini novels I bought at the dusty
bookstore in Alpine. .. and put that transmission back in my fishin’ truck.

This is why we abandoned free broadcast television? to be advertised into
submission (or numbness)?

I’ll add this about mandated insurance specifically.. here in Texas we have loads
of uninsured drivers.. unlicensed, uninsured and undocumented drivers too! .. but since it was
made law you can’t drive without liability coverage.. the cost of real insurance
has ballooned! .. so we now have these cardboard storefronts selling pay-by-
the-week ‘affordable’ policies. A huge ‘industry’.

These policies make you legal on the road and allow you to register your
vehicles and more.. But wait! don’t get hit by someone with one of these
policies. You’ll find the only coverage they provide is to end-run the law
requiring insurance.

Just wait until we see the same thing for mandatory health coverage!

Adios.

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By Inherit The Wind, December 25, 2010 at 12:51 am Link to this comment

Rico:
The gecko tried to change colors to escape your dog????  TERRIBLE tactic…I guess geckos haven’t figured out dogs only see mono-chromatically—they are color-blind.

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By FRTothus, December 24, 2010 at 9:36 pm Link to this comment

What gets me is how anyone can be naive enough to
believe that these insurance companies won’t try
anything to avoid paying.  Katrina, anyone?  In “safe
hands”, my ass!  That “good neighbor” denied
thousands of legitimate claims, as did all their rest
of the industry’s kind. And the republican in the
White House made sure the medical industry get
mandated payments, too, soon.  Don’t like the
coverage?  Tough shit. You’ll pay and you’ll like it.
They are not our friends, and their opulence tells
you all you need to know about the rewards that
accrue to the domestic protection racket and its
white collar criminals.

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Queenie's avatar

By Queenie, December 24, 2010 at 8:42 pm Link to this comment

Merry Christmas to you, too, rico,suave. I think it is time somebody gave you credit for being here on this leftist site. I don’t always agree with you but I gotta say, you got balls. And a sense of humor.

I believe, because of your picture that you are a pilot so in the spirit of the season just remember you can’t fly on one wing. Cheers.

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rico, suave's avatar

By rico, suave, December 24, 2010 at 7:50 pm Link to this comment

And one more thing…

The title of Sirota’s article: The Faces of Economic Death (!!!)

A gecko and a perky chick??? I’m thinking a swollen-bellied Sudanese kid picking through the dirt for rice might not agree.

“Over the Top” has a new definition. Dave, you’re a dick.

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rico, suave's avatar

By rico, suave, December 24, 2010 at 7:07 pm Link to this comment

I’m no economist. And neither is David Sirota.

I agree with ITW, and Sirota has way too much time on his hands if he has to resort to beating up TV cartoon characters to draw his next paycheck from his syndicator.

I saw a gecko racing across my deck earlier- sikked my dog on that bad boy. He tried to change colors and hide, but it was too late. TOO LATE!!! Hahahahahaha! Bug eater, my ass!

Now, Flo, on the other hand… Heh-heh-heh-heh…

Besides, I like the slick guy asking “Can Geico really save you 15% or more on car insurance?...” Now that’s some clever shit. Woodchucks? Big biscuits? Funny. Come on Sirota. Merry Christmas already.

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By Alan, December 24, 2010 at 6:37 pm Link to this comment
(Unregistered commenter)

Yes, well of course.  The point of the modern
distributed fascist state is not to harangue
from a balcony, but to mesmerize and anesthetize
from a thousand points of blight.
A thousand cobras instead of a lone wolf.
The entire purpose and function of any insurance
makes sense when the risk pool is largest, i.e.
when it is a common public function.
All the insurance companies should be nationalized
the health insurers at the very least, but we just
lost that battle when our new fearless leader
bumped into George W. Bush while mesmerized by
headlights and a high definition tv on a lonely
texas road.

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Queenie's avatar

By Queenie, December 24, 2010 at 5:48 pm Link to this comment

The gecko IS Australian, mate. And that damned little lizard saved me over $600.00 a year on car insurance. I don’t watch the TV so I don’t sweat the commercials. And for those living on the edge, there is always the fake insurance form.

There are alternatives.

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By Bob Harloff, December 24, 2010 at 1:26 pm Link to this comment
(Unregistered commenter)

Sirota accurately names the abuses of big insurance, but he fails to point out that Progressive’s President, Peter Lewis, is a big time contributor to Democratic causes, and that is a rarity among insurance companies.

In addition, Progressive Insurance provides money for a lot of charities locally and nationally, with very ittle fanfare.

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By Inherit The Wind, December 24, 2010 at 9:21 am Link to this comment

What a dumb article.  “Cockney”?  I thought the Gecko was Australian.

Besides, both Geico and Progressive have been the only REAL competitors to the big, abusive insurance companies, offering more than competitive rates by avoiding the huge overhead of neighborhood dealers.

Allstate has been notorious for dropping you as soon as you make a claim.  State Farm is better. 

But Geico and Progressive have been the least of our insurance worries as car and home owners.

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kerryrose's avatar

By kerryrose, December 24, 2010 at 7:46 am Link to this comment

I paid Allstate for so many years… and when I filed a claim they paid, and then I got a letter dropping me.  I wrote to NY State Insurance overseers and they contacted Allstate, and then told me that they cannot control the insurance companies policies.  I went to an insurance broker, and stupidly told him I had been dropped.  The only company that would take me was State Farm for $600 a month.

I thought I’d never drive again until I called Geiko.  I didn’t tell them I was dropped, and told them I couldn’t give them my SS# because I don’t do that unless I am borrowing money.  They offered me $165 a month.  It saved my life. (thank god lizards aren’t wily creatures).

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By TAO Walker, December 24, 2010 at 4:52 am Link to this comment

David Sirota seems a little CONfused here.  The institutionalized cannibalism he’s decrying is simply the logically inevitable terminal phase of the same process he suggests was (and would again be) okay when its depredations are inflicted only on the rest of our Living Arrangement….at the bloody hands of his own and others’ insatiable “selfs.”

Every wannabe “parasite,” including the subspecies homo domesticus, sooner-or-later becomes entirely autophagic as its capacity to exploit its surroundings diminishes to the point of being inadequate to the growing demands of satisfying its artificially enhanced appetites.  That’s just basic Biology….which, “self”-glorifying “self”-delusions to the CONtrary notwithstanding, is all there is or ever has been to the Song ‘n’ Dance of Life Herownself.

This eCONomy everybody is so desperately anxious about is nothing but the operating system for the retro-viral “civilization” disease hell-bent on devouring our Mother Earth and all Her Children.  That definitely does include those co-opted Human “individuals” whose induced organic dysfunction now has the damned thing gnawing voraciously at their own sorry asses.

Long-pig….anyone?

HokaHey!

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