I'm sorry, but that's exactly NOT what was predicted. What was predicted was that investors would overpay for the assets, using government money to reduce their risk. This has not happened. What has happened is that the private not subsidized market has recovered and some of the people Bloomberg quotes claim this is in expectation of PPIP purchases. But that article makes clear that the result of the price increases - in fact the reappearance of a market for these asset classes - has been that PPIP purchases have been curtailed. So the massive purchases of worthless junk paid for by FDIC dollars that Atrios/Krugman predicted did not happen. In fact, if PPIP can be credited, it revived the market with only a tiny expense in taxpayer funds.

As for market prices, market sentiment tells me nothing at all about the positives or negatives of the reform bill. The stock market does not have magical powers and frankly, whether the insurance companies stocks go up or down doesn't mean anything to me. What's important about the health bill is that it actually provides important benefits to many people and that it increases the political power of the union/obama coalition that forced it through congress over the bitter objections of the insurance companies. What kind of useful information can be obtained from
this kind of stock movement?
http://finance.yahoo.com/echarts?s=AET#chart2:symbol=aet;range=6m;compare=unh+^dji+^gspc;indicator=v olume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined