Ed’s Daily Notes for November 26th   5 comments

Fox News: Almost 80 million with employer health care plans could have coverage canceled, experts predict

Almost 80 million people with employer health plans could find their coverage canceled because they are not compliant with ObamaCare, several experts predicted.

Their losses would be in addition to the millions who found their individual coverage cancelled for the same reason.

Stan Veuger of the American Enterprise Institute said that in addition to the individual cancellations, “at least half the people on employer plans would by 2014 start losing plans as well.” There are approximately 157 million employer health care policy holders.

Avik Roy of the Manhattan Institute added, “the administration estimated that approximately 78 million Americans with employer sponsored insurance would lose their existing coverage due to the Affordable Care Act.”

Last week, an analysis by the American Enterprise Institute, a conservative think tank, showed the administration anticipates half to two-thirds of small businesses would have policies canceled or be compelled to send workers onto the ObamaCare exchanges. They predicted up to 100 million small and large business policies could be canceled next year.

According to projections the administration itself issued back in July 2010, it was clear officials knew the impact of ObamaCare three years ago.

What will be truly interesting is if those cancellations go out before next year’s mid-term election.

Bloomberg: Gold Fix Drawing Scrutiny Amid Knowledge Tied to Eruption

This is the very definition of “insider trading”:

Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919. Now, dealers and economists say knowledge gleaned on those calls could give some traders an unfair advantage when buying and selling the precious metal.

The U.K. Financial Conduct Authority is scrutinizing how prices are set in the $20 trillion gold market, according to a person with knowledge of the review who asked not to be identified because the matter isn’t public. The London fix, the benchmark rate used by mining companies, jewelers and central banks to buy, sell and value the metal, is published twice daily after a telephone call involving Barclays Plc (BARC), Deutsche Bank AG (DBK), Bank of Nova Scotia, HSBC Holdings Plc (HSBA) and Societe Generale SA. (GLE)

The process, during which gold is bought and sold, can take from a few minutes to more than an hour. The participants also can trade the metal and its derivatives on the spot market and exchanges during the calls. Just after the fixing begins, trading erupts in gold derivatives, according to research published in September. Four traders interviewed by Bloomberg News said that’s because dealers and their clients are using information from the talks to bet on the outcome.

“Traders involved in this price-determining process have knowledge which, even for a short time, is superior to other people’s knowledge,” said Thorsten Polleit, chief economist at Frankfurt-based precious-metals broker Degussa Goldhandel GmbH and a former economist at Barclays. “That is the great flaw of the London gold-fixing.”

We will see whether the British government actually does anything about this, but I’m not holding my breath…

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Posted November 26, 2013 by edmcgon in Market Analysis, News, Politics, Precious Metals

5 responses to “Ed’s Daily Notes for November 26th

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  1. When you leace govt. in charge this is the type of results:

    http://www.cnbc.com/id/101225308

    • ojunker,
      Where are your priorities? What’s more important, Obama’s political legacy, or a few million identity thefts? Get with the program…

    • I question Mr Kennedy’s motivations. Security was certainly baked into the web site (I have used it) though it is unclear if someone will eventually breach the site’s protections It is interesting that he cited Amazon, Facebook & Twitter as examples of secure sites given that all three have been hacked in the not too distant past.

      Robb

      • There should be no problem with this. When asked they can just say “We use industry security standards.”. 🙂
        (That is the answer you always get when you ask a company/financial institution about their security, or they give the stupid answer that they use SSL for the connection).

      • P.S. As far as security goes, I don’t trust any of them really. I trust in being one in millions, not leaving my keys in an unlocked car per se, and that there are at least laws to try to get my money back if it is stolen.

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