First Aid

When I was a Boy Scout, I earned the First Aid merit badge. In an emergency I learned that one of the first things to do is stop the bleeding. And one of the best ways to stop the bleeding is to apply pressure directly to the wound.

That’s why there’s no imperative to fix health care right now. There’s no pressure on consumers, providers, or the government to change things. Even though it’s been estimated that Medicare as currently configured amounts to a $100 trillion unfunded mandate, no one seems worried except green eyeshade types and policy bores. We always assume that Uncle Sam will somehow have the cash when we need it.

But it’s been my experience that when the accountants say something is broke, it’s broke. And wishing won’t fix it. So any solution to health care costs has to make consumers and providers feel pressure every time they spend money on health care. If we let up on that pressure, the bleeding will just continue.

If a patient keeps losing blood, he weakens and dies. Applying pressure now might help us avoid having to use more severe measures later on.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-04T21:13:25+00:00 May 22nd, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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