As stated by myself and others many times - when off script, Obama is a bumbler - consistently inconsistent, making claims that simply do not stand up to even the sightest scrutiny.
You are correct - here he gives a very legitimate answer as to why the government should NOT be involved to a greater degree in health care - it cannot compete efficiently, just like the Postal Service which runs billions in debt each year...
The US postal service is doing better than AIG, GM, Chrysler, Bank of America, Bear Stearns, Goldman Sachs, Berkshire Hathaway, Morgan Stanley, Citi Group, CIT, Enron, World Com, Health South etc
Government is doing a good job providing healthcare for our prima dona congress. Why don't we privatize the military if the government cannot run anything.
Government has more bureauracracy than the private sector but the private sector has more than their share of failings.
That is why a combined private/public program is the best option