Federal Reserve's Federal Open Market Committee held a two-day policy meeting June 21-22, 2011, and subsequently on June 22, Fed Chairman Ben Barnanke held his second formal press conference, where he expressed that even Fed policymakers had been surprised by the stalling economic growth. The meeting was held in the backdrop of wrapping up and winding down of QE2 program in the month of June, 2011. The Federal Funds rate was left untouched at historic low. The press conference attracted huge interest from the traders and financial circles as Barnanke began it first time in Fed's 98-year history on April 27, 2011.
FOMC held its another round of meeting on November 1-2, 2011, and at the end of the two-day meeting, decided to stay put. However, Bernanke gave a gloomier estimate of the economy:
* Projected GDP growth 2.5%-2.9% (revised from June estimate of 3.3%-3.7%) in 2012
* Projected GDP growth 3.0%-3.5% (revised from June estimate of 3.5%-4.2%) in 2013
The jobless rates are projected at least 8.5% by the end of 2012, at least 7.8% by the end of 2013, and at least 6.8% by the end of 2014.
The vote to stay put was 9 to 1, with Chicago Fed President Charles Evans dissenting to mark his voice in favor of doing more and against the Fed's too cautious stand on inflation. This is the first time since 2007 that ant Fed member had dissented voicing support for doing more.
Tuesday, August 23, 2011
Sunday, July 24, 2011
NURSING HOME, HOSPITAL INDUSTRIES
NURSING HOMES
Long a contentious point, but highlighted by the disproportionate number of deaths among nursing home populations during COVID-19 pandemic, President Joe Biden emphasized the need for stricter mandatory threshold for staffing requirements of the nation's nursing homes during the 2022 State of the Union address. At that time, many advocacy groups and elder support groups have voiced support for Biden's focus on an issue that involves circa 15,000 facilities and about 1.2 million residents.
On September 1, 2023, Biden administration unveiled its proposals that managed to anger both sides of the aisle. Under the rules that were published on the Federal Register on September 1, 2023, the minimum staffing threshold will be 3 hours per resident per day, including just over half-an-hour of the time coming from a registered nurse. Under the rules, there will be an RN 24/7 in the facility. Industry's main lobbying group American Health Care Association's president, Mark Parkinson, a former Democratic governor of Kansas, uttered that the rules were "unfounded, unfunded and unrealistic" and "we hope to convince administration" not to finalize them.
Advocacy groups lambasted the proposals as the current average staffing level at the nursing homes is equivalent to 3.6 hours per resident per day, including over an half an hour coming from a RN. Biden's rulesets will mandate the current average thresholds without any improvement. Advocacy groups are pointing at a 2001 CMS-funded study that recommended 4.1 hours per resident per day, which, advocacy groups contended at that time, fell short of their expectation. Long Term Care Community Coalition leader Richard Mollot said that Biden's proposal will do a bare minimum ripple, not a significant reform that many advocacy groups have thought that it would herald in the most consequential piece of intervention step since the Nursing Home Reform Act of 1987.
Saturday, July 23, 2011
Texas Budget (Biennial 2012-13)
Texas House and Senate passed a $172.3 billion, two-year spending bluprint by 97-53 and 20-11 votes, respectively, on May 28, 2011, and sent it to Gov. Rick Perry for his signature. The budget cuts $20 billion from the present levels of spending.
As part of the budget, the school funding plan includes the most controversial elements as legislators proposed to cut $4 billion in school funding over the next two years. On the top of $2 billion per year, an additional $1.4 billion in grant money will also be chopped off. The proposed cut comes despite $830 million from the economic stimulus plan from the federal government. The compromise crafted between the House measure and Senate measure includes a statewide 3.3% cut for the first year and a statewide 5.6% cut for the second year for 1,030 ISDs of Texas. The second year cut would affect higher-spending, wealthier districts more than the midsize, rural districts. Under the current target revenue adjustment, districts such as Lubbock get less than the higher-spending, wealthier districts.
Although House approved the education measure on May 29 by 84-63 measure, Senator Wendy Davis, D-Ft Worth, put up with a spirited filibuster, jeopardizing the education measure at the Senate floor. Gov. Rick Perry on May 30, called a special session starting immediately as the education measure was stalled at the Senate.
As part of the budget, the school funding plan includes the most controversial elements as legislators proposed to cut $4 billion in school funding over the next two years. On the top of $2 billion per year, an additional $1.4 billion in grant money will also be chopped off. The proposed cut comes despite $830 million from the economic stimulus plan from the federal government. The compromise crafted between the House measure and Senate measure includes a statewide 3.3% cut for the first year and a statewide 5.6% cut for the second year for 1,030 ISDs of Texas. The second year cut would affect higher-spending, wealthier districts more than the midsize, rural districts. Under the current target revenue adjustment, districts such as Lubbock get less than the higher-spending, wealthier districts.
Although House approved the education measure on May 29 by 84-63 measure, Senator Wendy Davis, D-Ft Worth, put up with a spirited filibuster, jeopardizing the education measure at the Senate floor. Gov. Rick Perry on May 30, called a special session starting immediately as the education measure was stalled at the Senate.
Chrysler Paid Back $7.6 billion to Governments
Two years after lurking near bankruptcy and getting $10.5 billion bailout from US and Canadian governments, Chrysler on May 24, 2011 took a big leap towards fiscal health as it paid back $5.9 billion to the U.S. Treasuries and $1.7 billion to the governments of Canada and Ontario. This came on the top of the first quarterly net profit (this year's first quarter)in five years and CEO Sergio Marchionne's push to revamp the vehicle line to generate enthusiasm among consumers. Also, on May 24, Fiat infused an additional capital of $1.3 billion to raise its stake to 46%.
Barnes & Noble Received Acquisition Offer
Barnes & Noble, the iconic book retailer, on May 20 received an $1 billion offer from the Liberty Media conglomerate led by John Malone. Malone's offer specially hinges on the prowess of the chain's electronic book reader, NOOK. Liberty offered $17 a share in cash. Liberty runs three publicly traded companies: Liberty Interactive Inc., Liberty Starz Group and Liberty Capital Group. The iconic bookseller is a household name, brand created by a dedicated team of executives led by the founding Chairman Leonard Riggio.
Tuesday, July 5, 2011
Report from Board of Trustees on Social Security and Medicare
On May 13, 2011, the Board of Trustees issued the annual fiscal health report on two sacrosanct federal programs--Social Security and Medicare. According to this year's report, the surplus of the Social Security trust fund will disappear in 2036, a year earlier than predicted last year. Medicare Part A, or Medicare Hospital Insurance Fund, will run out of money by 2024, five years earlier than predicted last year. The report also suggests that retirees will get only 0.7% cost of living adjustment (COLA) to their social security paycheck next year after getting none for two years. The meager increase will be all but eaten away by higher Medicare Part B premium. The Board of Trustees also reported recommendations to fix the two mandatory programs and make them solvent for the next 75 years:
* Social Security: Raise the payroll tax by 2.15% or slash the benefit by 14%.
* Medicare: Raise the payroll tax by 1% or slash the benefit by 17%.
Nearly 55 million retirees, disabled people and children who had lost parents are recipients of social security benefit, while more than 46 million people are in Medicare roll.
Source: The Dallas Morning News
Last year (2012), the Board of Trustees
estimated that the Medicare Hospital Insurance Fund would be exhausted in 2024,
and Social Security Trust Fund would be exhausted by 2033.
* Social Security: Raise the payroll tax by 2.15% or slash the benefit by 14%.
* Medicare: Raise the payroll tax by 1% or slash the benefit by 17%.
Nearly 55 million retirees, disabled people and children who had lost parents are recipients of social security benefit, while more than 46 million people are in Medicare roll.
Source: The Dallas Morning News
On June 1, 2013, the Board of Trustees issued its outlook
for both Medicare and Social Security Trust Fund. Medicare Part A, or Medicare
Hospital Insurance Fund, will run out of money by 2026. The standard Medicare
Premium (Medicare Part B) for the next year (2014) will remain the same,
$104.90 a month. Social Security Trust Fund will run out of money by 2033. The
recipients of Medicare benefit will increase from the current level of 52
million to 73 million in 2025. At present, there are more than 57 million
social security beneficiaries, and an average of 10,000 baby boomers become
eligible each day.
Microsoft to Acquire Skype
On May 10, 2011, software giant Microsoft announced a $8.5 billion deal to acquire internet telephone company Skype SA from a group of sellers that include eBay Inc. and private equity firms Silver Lake and Andreessen Horowitz. The acquision marks the largest transaction in 36-year history of the software giant. Microsoft will use Skype's 170 million users to leverage its growth with its universal tools and applicatios such as XBOX game console, outlook e-mail program and Windows smartphones. However, 95% of the Skype customers use the service free of any charge, making it almost impossible for Skype to make money just by calling since it was founded in 2003 by the two entrepreneurs Niklas Zennstrom and Janus Friis.
On October 14, 2011, Microsoft closed the $8.5 billion deal.
Source: The Dallas Morning News
On October 14, 2011, Microsoft closed the $8.5 billion deal.
Source: The Dallas Morning News
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