Morning Musings From Art Cashin - The Bubonic Plague And Healthcare Reform

I have never read the morning report from UBS own Art Cashin, but what I read yesterday, blow me away:


And here is why fixing healthcare, whether today or in the middle ages, never works when the government gets involved:

History

On this day in 1349, in the midst of the infamous Black Plague epidemic, the forces of government, science and academia came together with a plan to save the people. As you recall from earlier episodes, the Black Plague had spread from the eastern Mediterranean throughout most of Europe killing millions over the preceding three years. People searched everywhere for the source of the plague…..a heavenly curse; a burden of immigrants; the result of spices in the food. It was tough to figure however, since whenever they held a conference either the host area caught the plague or the visitors did…..so…..not too many conferences.

Then in the six months preceding this date the death rate leveled off…..or seemed to. So in castles and universities and town halls across Europe, great minds pondered the cause of the plague. And they came pretty close. The collective governmental/academic wisdom was that the source of the Black Plague was fleas - (absolutely correct). So the word went out from town to town across Europe - to stop the plague - kill the fleas -by killing all the dogs. And immediately the slaughter of all dogs began.

But like lots of well-intentioned governmental/academic ideas it was somewhat wide of the mark...and had unexpected consequences. The cause was fleas alright but not dog fleas…..it was rat fleas. And in the 1300's what was the most effective way to hold down the rat population…..you guessed it - dogs. So by suggesting that townsfolk kill their dogs, the wise authorities had unwittingly allowed the rat population to flourish and thus a new vicious rash of Black Plague began. Before it was over, three years later, nearly 1 out of 3 people in the world had died of the plague.

To mark this eventful period, take time to review your public servant’s plans for your welfare. Whether taxes or healthcare, they'll work night and day for a solution. It may not be as efficient as the way that they handled social security but - what is? Just remember that these public servants have your best interests at heart. Don't dwell on the DARK AGES. Back in those days the seat of government often was filled with rats, vermin and leeches. Thank goodness those days are over.

(Historic footnote…..Published sources say that with so many people dying, millions of estates had to be settled - result…..the fallout of the plague was a huge growth in....the number of lawyers.)

There were no carts on Wall Street with guys crying "bring out your dead" yesterday. But in mid-afternoon, the stock market looked like it needed a doctor.


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I think we can use this lesson also to the solutions of actual crisis. Printing money and government borrowing is like chasing the dog. Its not the right medicine and the plague of debt is spreading and one day it can destroy the whole population.