Today's top headlines: The spill in the Gulf of Mexico could be the most expensive ever, the Governator embraces health care reform, Shanghai set to open the doors on its World Expo, and Warren Buffet gets ready to talk Goldman Sachs.
CVS Health Corp. (NYSE:CVS) stock has been upgraded from Neutral to Buy/Attractive by Goldman Sachs Group Inc. On the grounds of unmatched leverage to Rx growth and procurement savings, Goldman Sachs analyst Robert P Jones sees immense upside to CVS earnings. Consequently, he has uplifted the target price on the stock from $95 to $113, depicting the stock potential to appreciate 14% from its current price.
Once Obamacare is implemented, America's health insurance system will be a thicket of subsidies and transfers that benefit some people and harm others. Critics of the law have seized on this observation, noting the existence of "rate shock": some people (especially young and healthy ones with moderate and high incomes who buy insurance in the individual market) will pay more than they used to, so others can pay less.
Dean Baker submits: At a time when all the tough guys in Washington are making plans to cut Social Security and Medicare benefits for high-living seniors and to cut Head Start for low-income kids, it was generous of Warren Buffett to point out that we taxpayers gave over $1 billion to Goldman Sachs (GS) through TARP.
I've been a bit annoyed by the convention of referring to the health-care bill's 10-year cost rather than its annual cost. We don't talk about very much in terms of 10-year costs, and so people don't have much context for it. So I asked crack intern Dylan Matthews to build a crude comparison of what various government programs are projected to cost in 2015 (chosen because health-care reform doesn't kick off until 2014, and I wanted to give it a year to get up and running). Projections are always iffy, but this is just to get an idea of the relative size of different programs.