WSJ Book Review: ‘Stress Test’ by Timothy F. Geithner

According to this review Mr. Geithner thinks quite a lot of himself. He takes credit (credit?) for the lion’s share of the TARP bailout, which he sees as a success and not as many have come to see in the years since, an overreaction to a meltdown brought on by easy money which fundamentally undermined our economy.

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Detroit dysfunction from the inside, Former head of transport for the city says it’s a lost cause

 “I felt like a guy in the boiler room of the Titanic, desperately bailing to keep the ship afloat for a few more hours while the DOJ attorneys complained from their first-class cabin that their champagne wasn’t properly chilled.”

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“For the U.S., the moment to act is now, before the cancer of crony capitalism metastasizes.”

Luigi Zingales asserts in this Wall Street Journal op-ed that America is starting to look a little too much like Italy (his mother country) economically.

Increasingly merit has less to do with “success” in the United States than access to persons of power, especially government power.

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Romney is Worried about Ron Paul

I have been very open in my support for Ron Paul. I personally believe he is the last best chance for us to save the remnant we have of the Republic and from there reestablish it to what it should be. I also think that Ron Paul has an excellent chance of beating Obama. He might even have a better shot than Romney.

One of the biggest stories not being covered by the old media is the contrast in crowd numbers between the 2 GOP rivals.

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Fed Policy Favors the 1%, Krugman Disagrees, Defends the Price Fixers Again

Thanks again to Tyler at

In the attached piece Tyler Durden posts the recent op-ed in the Wall Street Journal by Mark Spitznagel who makes the case that current Fed policy strongly favors the wealthy, specifically the investment bankers. His analysis is right on in this site’s opinion.

Spitznagel writes:

The Fed, having gone on an unprecedented credit expansion spree, has benefited the recipients who were first in line at the trough: banks (imagine borrowing for free and then buying up assets that you know the Fed is aggressively buying with you) and those favored entities and individuals deemed most creditworthy.

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More Green Graft? Obama Admin Says Subsidy Program Created 102,883 Jobs. OK So Where Are They?

The 1603 tax credit plan was originally funded by the stimulus plan but ran out in December. Now the president wants the $10 billion program revived. Republican leaders are not so sure that is a good idea.

The administration originally claimed that just over 100,000 jobs were created by the plan which pays a direct subsidy to certain companies engaged in “green” energy projects. The House leadership would like to see where the administration got its numbers. A deadline of March 29th was set.

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David Cameron Doesn’t Understand What Crony Capitalism Is

In an interview yesterday with the BBC, the British Prime Minister warned of “excessive growth in payment unrelated to success that’s frankly ripping off the shareholder and the customer and is crony capitalism and is wrong.”

Though there may be some merit to putting some executives’ pay in the spotlight, such pay in and of itself is not the result of “crony capitalism” per se.

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