The Fed lowering interest rates to %1 or lower is what enabled the banks to offer these teaser products and floating mortgages (ARMS) at under %5. Without that, there is no feeding frenzy from the public. It might be politically expedient to blame the programs over at Freddie and Fannie, but they are a side show to this whole mess. If you want to talk about corruption at Fannie and the corrosive effects of stock option compensation, that's another story.

As for government 'stimulus' I believe there is consensus among economists that it takes at least 2-3 quarters before it actually takes place. Which is why many of them wonder if it is worth it.

And the Cash for Clunkers program certainty was stimulative to the auto industry. Whether it will be worth it long term is another question entirely.

Reasons for the financial collapse was the Fed and the various bits of financial deregulation. Not to mention a large section of the American populace going crazy. Lehman or Bear or AIG didn't implode due to Fannie Mae. They did that on their own!

I don't really understand the excitement about interstate insurance competition. Leaving aside as another conversation the fact that state regulation (cool from a state's right's perspective) would be replaced by more federal regulation (seen by many in favor of this change as 'evil'), I don't see the economic benefits to consumers. What we saw when similar restrictions were lifted in the banking industry was a massive consolidation. Then we saw banks that were too big to fail.

It's true that if a risk pool can be enlarged, the risks can be better distributed. But that means fewer, larger pools. Fewer pools means less competitition.

Health Insurance is a natural monopoly.

Those who called themselves conservative used to value tradition and civility, especially in the public sphere and around the office of the President.

What happens when one becomes a traitor to one's own values?

You keep mentioning a $50B or $100B number, but I haven't been able to source that...

Here's what I found: (yeah, rock teh google)

The newly proposed $313 billion in savings, he said, "will come from commonsense changes." He would cut $106 billion from payments that help hospitals treat uninsured people because his plan would cover nearly every American. Payments for Medicare prescription drugs would fall by $75 billion over 10 years.

And slowing projected increases in Medicare payments to hospitals and other providers - but not doctors - would save $110 billion over 10 years, the president said. His budget director, Peter Orszag, said the reductions are justified because health care delivery is becoming more efficient.

http://www.cbsnews.com/stories/2009/06/13/politics/main5085776.shtml

In fact, your numbers are not mentioned at all in this oficial whitehouse document: http://www.whitehouse.gov/MedicareFactSheetFinal/

In that document, cutting waste, fraud and abuse is only a sub item of $22B over 10 years. Not $50B per annum as you have been suggesting here in Salon.

Also, to answer your prior query, the administration is already busting scamsters and fraudsters:

http://www.cbsnews.com/stories/2009/06/24/national/main5109783.shtml

WASHINGTON, June 24, 2009

Nationwide Medicare Fraud Ring Busted

U.S. Crackdown Thwarts Elaborate Scam That Attempted To Bilk Medicare Out Of $50 Million

[...]

Last month, Holder announced the federal government would step up health care fraud efforts nationally, increasing the budget by 50 percent to $311 million in 2010 and adding manpower to task forces in Miami, Los Angeles, Houston and Detroit.

[..]

Watchdog groups estimate anywhere from 3 to 20 percent of Medicare spending is fraudulent - up to $70 billion dollars a yea, wasted, Cordes reports.

So while I continue your enjoy reading about your romance with your Sarah, I am beginning to sense a certain lack of veracity on your part.

It all might add up to real money.

The Dartmouth Atlas Project studied the records of 4.7 million Medicare enrollees who died from 2000 to 2003 and had at least one of 12 chronic illnesses. The study demonstrates that even within this limited patient population, Medicare could have realized substantial savings—$40 billion or nearly one-third of what it spent for their care over the four years—if all U.S. hospitals practiced at the high-quality/low-cost standard set by the Salt Lake City region

http://www.naturalnews.com/019565.html

Then there's Blue Cross Blue Shield of North Dakota:

Hamm said that of the $418 million in the company's administrative expenses over the past five years, the audit found "millions and millions of dollars in excessive expenses."

The report said that premium payments funded nearly $15 million in employee bonuses that were almost assured regardless of performance, a $3.5 million investment in a hotel in Fargo and sales reward trips to resorts totaling $1.2 million.

In one case, the audit found that $34,814 was spent for a party for a retiring vice president.

http://www.google.com/hostednews/ap/article/ALeqM5jzTzv6Yw5fqfQNCvMAUIkpBdHqGAD9AJI8L80

Pharma is willing to chip in $8B/year just to keep from real price negotiations.

All of this is great news! For John McCain!

The world has moved on.

His lips moved
The world shook
It was all a lie.

I love my XBox

"This evening, I let my emotions get the best of me when listening to the president's remarks regarding the coverage of illegal immigrants in the health care bill," the statement said. "While I disagree with the president's statement, my comments were inappropriate and regrettable. I extend sincere apologies to the president for this lack of civility."

http://www.cnn.com/2009/POLITICS/09/09/joe.wilson/

SEC. 246. NO FEDERAL PAYMENT FOR UNDOCUMENTED ALIENS.

Nothing in this subtitle shall allow Federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States

http://www.opencongress.org/bill/111-h3200/text

Is it duck season or rabbit season?