Monday, March 16, 2009

When Plunging Stock Prices Are Good

Jonathan Chait:

[Jim] Cramer assailed Obama for "destroying the profits in health care companies (one of the few areas still robust in the economy)." The United States has the most expensive, least efficient health care sector in the advanced world. The flipside of that inefficiency is massive profits in the health care sector. Anything that reduces waste necessarily reduces that profit. Cramer naturally sees this as a disaster. But why should the rest of us care?

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