Something scary…
I just noticed this comment from my Yahoo financial page.
Sellers rush in in the opening minutes, prompted by what has been some lackluster economic data and devastating news from Dow component Merck (MRK 32.61 -12.46)... The drug giant announced it was voluntarily withdrawing its blockbuster (FY03 sales of $2.5 bln) arthritis drug Vioxx after a private study revealed it increased the risk for heart attack and stroke... Every one dollar change in Merck equates to a roughly 7 point change in the Dow - thus, most of the Dow's losses are the product of MRK's tumble...
The Dow had just dropped 69 points in the first 10 minutes of the trading day.
What’s scary you ask? The most obvious is the fact that it took a private study to find out about the dangers of this drug. Where was the FDA in all of this? The same FDA that proclaims that only American drugs are safe…that only the rigorous testing mandated by the FDA will keep the consumer safe from harm.
Second; why does the bad news about a drug company affect the economy in such a powerful way? Have we allowed the pharmaceutical industry to become the backbone of our economy? No, I don’t think so…but it is obvious that they have far too much influence in the economy.
To Herperdude's comment: What does the fact that this "left of center" lady being an African American have to do with anything? Why did you feel the need to describe her in this way? Very odd.
ReplyDeleteWhat is the "Frakenstein" affect?