Read here: "
Save capitalism and free markets from the banks - Nassim Taleb." (thanks to Dave Lull and to Navanit Arakeri).
Nationalise the banks, limit the rewards to those who work in what he calls the “utility” part of the system and have a completely uninsured second leg that can take all the risks it wants and lose its shirt, he said in an interview in Davos at the World Economic Forum.
“They rigged the game. We pay them for their profits, there is no clawback so their incentive is to hide the risk they are taking.”
“Which is why eventually as someone who loves free markets, a total nationalisation of the part of the business that requires insurance and does clearing and payments needs to happen.” [emphasis mine]
“I am angry with U.S. policy. What we had is exactly the opposite of socialism, they got TARP to pay their bonuses and to take more risk.”
He describes his plan as Capitalism 2.0. It would have a barbell structure, with the insured utility-like part on one end and the free market bit with privatized risk on the other. [emphasis mine]
He describes banking bonuses as asymmetric because the banker gets the upside but does not share in the liability which ultimately may be funded by taxpayers, as we have seen.
My title: "Save healthcare and the patient of one from the health insurance companies."
The parallels between banking and healthcare are crystal clear.
If crisis provides opportunity, then the above insights on bank reform could prove fruitful in transforming healthcare sans a negative Black Swan hit. As I have stated before, on the asymmetric healthcare spectrum barbell, catastrophes (car accidents or strokes, for instance) fall into the "insured utility-like part" and lifestyle choices (exercise or nutrition, to name a few) fall in "the free market bit with privatized risk."
I will keep reflecting upon the bolded sections above; that's the core of it all in healthcare. Well, that is, if we ever want to really address the most tricky problem in our current health systems: cost.
