LyrArc Article Gist
A survey by Boston Consulting Group of 5000 users of online news content shows that only 48% of Americans are willing to pay to read news content online. They are willing to pay about $3 per month for access to online news content. This is much smaller than European countries presumably because of the acess to so much news content free online in the USA. The study was done by Mr Rose and Dominic Field, head of the media practice at BCG. News content is so fragmented in the USA, say the authors, that its still possible to find free content if some papers charge. Interestingly Americans were more likely to pay for sites that offered access to online news content for multiple papers. The most avid news readers are the ones most lik,ely to pay.The study concludes that charging for online access won't increase revenue that much but because the cost of reaching internet readers is very low, it has potential for significantly higher profits. Other countries surveyed are Germany, France, Spain, Norway and Finland....

LyrArc Article Gist
A new CBS-New York Times opinion poll in June 2012 shows 44% of those polled approve the job the Supreme Court is performing and about three fourths say the decisions of justices of the court are influenced by their political and personal views. By comparison only 15% approve of the job done by the U.S. Congress in the most recent poll. Only one in eight say the justices make decisions based solely on legal analysis. About 60% say they agree that life tenure for justices is bad because it gives too much power to justices. On the health care law two thirds of those polled say they hope some or all of the 2010 Obama health care law is overturned.

LyrArc Article Gist
Are there costs or are there savings from the Obama health care bill? Does it affect jobs and how? The Congressional Budget Office says the health care law will save $230 billion in ten years based on a whole set of calculations and assumptions. Commonsense and basic math leads others to question how spending $930 billion on insuring 32 million Americans could end up with significant savings. The different view argues that the Budget Office erred in making some calculations, by counting $70 billion in premiums from long term care because they would be used to pay benefits later, omitted $115 billion in spending to adminster the law, and omitted $208 billion needed to prevent scheduled reductions in Medicare payments to doctors. The money needed on the Stimulus, on two wars in Iraq and Afghanistan, and the uncertain prospects of the US economy in the longer term till debt and other issues are resolved, injects the critical element of difficult choices and priorities. If state and local budgets are severely strained in 2011-2012 would that require federal help and will there be other needs that will have to be met by the federal government that are critical such as another unexpected downturn, or a resolution of unresolved bad debt at the large US banks There is also a sense that the health care law does not do enough to reduce the cost of health care that will be needed over the next decade so that other priorities are not neglected. Both parties are not up to the task in this respect for running the country's finances withot using the numbers to tell different stories....

LyrArc Article Gist
Anthropic's settlement for $1.5 billion at $3000 a book, and it's efforts in Education that conflict with the Nation's need to get 4th graders to Read and Learn. Anthropic's website shows it trying to get into Education and to measure the Economic Index from effects of AI. Yet the pretensions to goodwill for the public cause is not supported by facts, facts that the AI companies have nothing to show for the dismal situation for Global Literacy that is the case today. Literacy in the US that is dismal with about two thirds of 4th graders not able to read and comprehend the English language at a level of proficiency in American schools. These AI purveyors care only for the money they can make using vast amounts of electricity for these servers, and pretensions for public purpose are intended to smooth their access to public resources not some genuine interest in whether kids can read, which requires the hard work of the teachers in the public and private schools of this Nation and others in Europe, Asia, Latin America and Africa. The Movement for Global Literacy is Lyrarc's effort to support reading and learning and Lyrarc serves this purpose without such massive funding and without charging for the public service to the Nation and to other Nations in the world community. Anthropic settlement of $1.5 billion at $3000 a book for its AI bots use of copyrighted books, can lead to future litigation for OpenAI model that consumes vast amounts of data. Anthropic was founded by siblings Daniela and Dario Amodei after leaving OpenAI in 2021 in San Francisco. It hired Google Books Turvey to scan books for its large language models on a massive scale to train Claude its version of OpenAI's ChatGPT.  An investment of $4 billion by Amazon and additional $2 billion by Google provided funding. In this way it is a competitor to Microsoft funded OpenAI which made early advances in AI.  This article in WSJ says by making the settlement for $1.5 billion Anthropic is trying to make it harder for Open AI to scan material easily without paying for the access and thus blocking it's rival.   ...

LyrArc Article Gist
As corporate America takes stock of the damage it finds on April 12, 2020-

270 companies have draw on existing credit lines or added ones for a total $221 billon in new debt.

100 companies furloughing 3 million employees.

Unemployment insurance claims filed by 17 million people.

Airlines, retail and automobiles some of the worst hit industries.

President Trump acted quickly on April 11, to save the oil and gas industry by negotiating cuts with OPEC+ so that oil prices do not collapse at the opening of markets on April 13 from the price of $22  barrel. He also pledged to save Boeing.

LyrArc Article Gist
This story in The Guardian looks at volunteer schools in Kashmir, India, as school children take classes in open meadows. Volunteer teachers are working to keep Kashmiri children in open air makeshift community classes in fields, pine forests and orchards,  so that some form of continuity in schooling can be maintained during the coronavirus. One volunteer teacher works with 100 children, And children have to cross rising rivers over wooden bridges in the rainy season, coming over long distances. Many families do not own a smartphone which cost Rs. 10,000 to %s. 15,000 to take internet classes. The government offers video classes on television and radio classes for older children in India. 

LyrArc Article Gist
Experts say about 110,000 votes separate Hillary Clinton and Donald Trump in the three states of Michigan, Wisconsin and Pennsylvania that decided the 2016 presidential election in the U.S. giving Trump the win. Post election reflection in the Democratic party points to a disconnect between the establishment in both parties and the white working class. It is described as something that was not thought enough about even though as pointed out in Lyrarc, and in The Washington Post by columnists, and in news coverage about the inequality movement long before Bernie Sanders appeared in 2015. In the period when banks were favored over millions of homeowners facing foreclosure in 2010-2014, the surging stock market and the zero to to half percent interest on savings that hurt savings of most of the working class and lower middle class without stock investments, and the continuing problems in communities facing job losses from trade for the third decade. The hollowing out of the regions in Ontario from job losses from the Canadian industry helped Justin Trudeau win the Canadian election. In this election it helped Trump in crucial midwestern states, combined with a degree of indifference shown by establishment Democrats. Former Vermont governor Howard Dean is planning to run for chairman of the Democratic National Committee. Bernie Sanders says he backs Minnesota Rep. Keith Ellison to be the next chair of the DNC. Jeff Weaver, campaign manager for Sanders, says the problem lies in what has been clear for some time now "that the centrist wing of the democratic party has no standing with working class and middle class  voters in this country." In 2016 only 51% of union households supported Clinton the lowest since 1980, 43% supported Trump. Obama won 59% of union households in 2008 and 58% in 2012 to 40% for Republican Romney. Trump picked up 3% of union households, Clinton lost 7% of union households, creating about a 10 point gap that would be magnified in industrial states where union jobs are concentrated, for about 18% of the people who voted in the election, enough to create the shortfall in Michigan, Wisconsin and Pennsyslvania. Fed chairman Janet Yellen pointed out the problems at an Inequality conference in Boston in 2014, pretty stark in its reminder that inequality had surged to levels not seen since the depression of the thirties, with 62 million households having a net worth of $11,000. Krugman and other economists had pointed this out on the pages of the NYT. Yet the post election reflection in the media is as if this is some special insight when it was clear for all to see, and covered in depth in Lyrarc for years since 2008. There is voter fatigue after 8 years of one party in power as pointed out by Obama campaign strategist, David Axelrod. The loss of union enthusiasm made the task of  a third term for the Democratic party even more difficult.     ...

LyrArc Article Gist
The southern U.S. which was early to reopen the economy after the lockdown with some states having only partial lockdowns, is emerging from the coronavirus in much better shape than the rest of the U.S. The unemployment rate fell to 6.9% in August, the lowest of any region. The number of people employed was only 6% lower in August than in February, when most of the U.S. went into lockdown, compared with declines of 10.6% in the Northeast, 8.2% in the West, and 7% in the Midwest. Some of this was a result of aggressive reopening in Texas and other southern states. Overall deaths in the south were 60 per 100,000 people compared to 132 in the Northeast including New York and New Jersey, Midwest at 52, and West at 40. The Northeast numbers are high because of the elderly in nursing homes hit hard in New York and New Jersey.  In the southern states by comparison the deaths came later and among young people taking risks. The virus hit the northeast early and parts of the midwest, southern states had the advantage of some of the work already being initiated in March to fight the virus nationwide. Many of these states are also Republican and residents feared the virus much less. Republican Governors followed their instincts and aggressively reopened putting the economy first. The numbers tell the story. In South Carolina 44% of Republicans say they aren't afraid of the virus outbreak in the local area, compared to just 2% of Democrats, according to Civiqs poll. Georgia and Florida have similar numbers, all with Republican Governors. One factor favoring southerners is that cities in the south are much less dense and less populated than in the North and West. Smaller cities than Los Angeles and New York. ...

LyrArc Article Gist
The change means sensitive technologies could no longer be accessed through Hong Kong says the WSJ. From China's perspective the $1.14 trillion held in Chinese banks in Hong Kong dollars is only about 3% of China's total $40 trillion in bank assets, and the effect on Chinese banks would take some time.

In fact the unequal trading relationship which left the American manufacturing base so widely exposed and sent outside the country has taken place for decades till this pandemic  showed its basic weakness, so much so that both sides may have a sense that this was about to end at some time anyway.

LyrArc Article Gist
An ad for a state sponsored campaign to promote women having babies on "Fertility Day," September 22, in Italy, shows a man holding a cigarette that is half burned, with the line: "Don't let your sperm go up in smoke."  The ads were deemed offensive and were withdrawn. Women say the problem is not that women don't want to have babies. It is because women depend on grandparents to provide childcare in a country that lacks enough child care facilities. Companies are still backward when it comes to offering flexible hours for women with small children. Birthrate in Italy is about 1.37 per woman compared to France at about 2.0, because France does better at flexible hours, and social safety net that includes day care and subsidies for families with children. In fact women say in cities it is prudent for women to think about having a second child because of work related issues. Italy spends less on social protection benefits- about 1% of GDP. Has a low female employment rate with some young women having to sign a pre-sign a resignation letter. Only recently did premier Renzi introduce a baby bonus of 80 to 160 euros. But the culture at work and the social support net is not encouraging. ...

LyrArc Article Gist
Trend following hedge funds that take pride in fast moving have dwindling returns 2025. 2025 with DJT decisions to create new world trade rules- that one can call LPF for Level Playing Field- are upsetting hedge funds and other financial funds returns. Trend setting group inside overall hedge funds lost 10% in first half of 2025. All hedge funds as group made 4% to S&P's 6% in first half showing that they guessed wrong with all their quant which cold not understand the idea of anew LPF system in world trade and the other maverick changes taking place in the tax system and in government approach to governing and ways ministries should be run. The problem solving approach is different - it's not taking no for an answer and says we can fix it so that America and the American people do not come out at the short end where old politicians and old political parties seem to have been headed.

LyrArc Article Gist
For decades without the leadership needed and the collaboration of the entire tech sector and health systems the goal of getting a patients record on the computer or on a phone app anywhere in the US across all health systems was out of America's grasp. This was happening even in countries such as Indonesia and India which were vastly improving health outcomes through their apps of patient health records available across the entire country. The US finally is making that effort which should help not only treat patients but give patients better control of their food, alternative ideas on what to eat and for exercise, other ways to improve their health. CMS Medical Records Interoperability Framework brings together 21 networks to align to it, 60 companies to work collaboratively, and 30 companies to try and improve patient health outcomes and their health in general. Australia, Indonesia and countries in Europe have done this, says Health Secretary Robert Kennedy. It is time the US did so also. ...

LyrArc Article Gist
The perception comes from seeing decisions made but not the process of decisions which is lengthy and even seen by participants as long, in which Mr. Modi act as a patient listener to all voices. Could'nt it be shorter is felt by some participants, yet Mr. Modi would have 2-3 meetings listening to all participants with humility before arriving at a decision. Tough decisions were made on vaccines to get to 1 billion vaccinations goal, on demonetisation and GST, and on digital India, housing schemes, bank accounts, and Jal Jeevan.  Mr. Shah points out that where earlier governments had brought bank accounts, electricity water, and cooking gas to some people, the approach of Mr. Modi was to get electricity, water, cooking gas to all homes for 1.4 billion people in India. He says Mr Modi is hard for even his colleagues to understand in terms of his passion and endless capacity for hard work for bringing essential services to every Indian, and the last Indian is a concept that not the BJP or any party had, it was entirely Mr. Modi's idea for New India. Mr. Modi he says is not the BJP or himself even, he is always thinking how could the lives of ordinary Indian be better in every way, and every rupee going to that last man in line in a nation of 1.4 billion. It can best be understood through Vivekananda's writings some 125 years ago. The passion for India and the Indian people of Vivekananda in his writings is a huge reservoir of energy for someone like Modi, that Modi has tapped into from his beginnings in Gujarat government and more so when he left Gujarat for Delhi. Vivekananda's foresight, energy, and passion for the Indian people is reflected in the efforts for New India. ...

LyrArc Article Gist
The crisis of late 2008 and early 2009 in the global economy saw huge stimulus programs, resposible economic management, and rapid recovery by the end of 2009 in developing countries. China put in place a large stimulus program, and in most developing countries, India, Vietnam, Brazil and other countries efforts were made to strengthen the safety net for the poor and to introduce stimulus for creating jobs. India and Indonesis saw the return of ruling party governments and in Brazil Lula da Silva had favorability ratings above 60%. So contrary to earlier fears in late 2008 their was both asense of political stability and asense of confidence in the developing countries. Capital is flowing into these countries and the IIF says that net private capital inflows to developing countries will double in 2010 to $672 billion. Russia which saw capital outflows of $50 billion in the first 9 months saw $20 billon of capital inflows in the fourth quarter of 2009. Half of the 140 million laborers working in Chinese cities returned home in early 2009, a fifth stayed there and another fifth counld not find work when they returned to the cities. But as the stimulus in China kicked in, and infrastructure development surged, (see link to the rail infrastructure spending) by the middle of 2009 jobless ness among rural migrant workers went down to less than 3%. This shows in the Pew Global Attitudes Project wth more than 40% of respondents in India, China and Indonesia saying that they were satisfied with their lives, in China this was 87%. In France, Japan and Britain the share is below 30%. In America 49% of those in the Pew pollingfelt that America should mind its own business internationally, 30 points higher than in 1964. When asked "Are you better off in free markets?" the respondents share fell in 2009 in Germany by 4 points, in Spain by 10 points. Shares rose in India and China, and stayed flat in Brazil and Turkey, so there is no backlash against free markets in developing countries....

LyrArc Article Gist
As the Obama administration plans a large stimulus spending plan that may approach $1 trillion over several years, considering also the second phase of the $800 billion first phase stimulus, there is a concern that there may be wasteful spending and social costs of borrowing and spending by the government of such proportions. In economics jargon this hinges on whether there is amultiplier effect of spending, higher if its efficiently and well spent with less impact on private consumption and investment, and lower if the opposite were true. The assumption behind amultiplier of 1.0 for an additional bridge or road is that resources like manpower and capital that would be otherwise idle are deployed to produce something useful. An increase in one unit of government purchases increases by one unit the real gross domestic product. The government has effectively created the additional bridge or road without a cut in anybody's consumption or a businesses investment. The other contrasting approaches are to say there is a multiplier of zero, meaning there is a social cost in two ways. One the reduction of consumption and the crowding out of businesses investing in new products and technologies for example, and second in the inefficent use of resources if a government bureaucracy is put to work allocating money and the additional dangers of favoritism and corruption. To say that there is a multipier of 1.5 would mean that the government figures out a way to get private investment through conversion of plants for automotive parts say to make wind turbine blades by giving incentives, tax benefits and grants, spends on a dilapidated road and public transportation infrastructure that may provide benefits in increased growth capacity over future years. The limits of a government bureaucracy and inefficiency of government would in this case be addressed by transparency rules adopted and measures that track progress that are freely available to all citizens say on a website on the internet, and by bringing in fresh management talent from the private sector. There appears to be no generalization that can be applied for one multiplier for all projects. It may be that the multiplier will vary with the project. Some projects like the conversion of a factory making unneeded auto parts to a badly needed wind energy part, to change the dynamics of energy market pricing, to meet energy needs and cut emissions, may end up having a multiplier much above 1.0. A redundant or less needed bridge has a lower multiplier than a bridge rebuilt before it leads to breakdown. And also the complication that too large a movement in one direction say of stimulus spending, might result in a shift of the curve towards a smaller multiplier and diminishing returns, as the resources to track such a large expenditure and the talent to adminster are overextended. The social cost of private investment not making that investment in new technology, new product or improved product has to be figured into all this, both at the conceptual level as all costs and benefits may not be picked up in the analysis, and at the macro level keeping in mind that the animal spirits, as they were once described, may just not be there to absorb the huge outlays which a government can make. These do not come without an opportunity cost and borrowing costs. All this leads one to to conclude that spending has to be carefully evaluated and projects assessed on a case by case basis for costs and benefits. The spending has to be balanced to provide just as many incentives for private investment to invest in new products and technologies. One way the Obama team is attempting to address this is to include a $300 billion tax cut for businesses and individuals. The business tax cuts are aimed at helping small business with losses, and for future investments and making hires and forgoing layoffs. The other part relates to careful evaluation of spending projects and transparency so the people can see if they are effective. See the link to this....

LyrArc Article Gist
Bubb and Kaufman say that a study they did on credit union and bank credit cards shows that credit unions offer better terms to their credit card holders than banks. And it is possible for banks to offer these better terms. Most Credit union cards they say do not increase the interest rate if the borrower fails to make aminimum payment on time. Ans credit union fees for going over the credit limit are on average just half of those of bank issuers.

LyrArc Article Gist
New York city Mayor Bloomberg, says President Obama and Republicans should stop promising a free lunch, or something for nothing. He points to Obama's reelection strategy of higher taxes for the rich- by taxing those earning over $1 million at minimum of 30% in federal income taxes- as generating $1.1 billion, according to Congress's Joint Committee on Taxation. This would make little difference on a federal government with $1.2 trillion gap in spending and revenue. And he says Republicans who say making the Bush tax cuts permanent while at the same time cutting the deficit are promising a free lunch, with no connection to reality. The answer says Bloomberg should be to eliminate the Bush tax cuts for all groups, for shared sacrifice, and for Congress to pass the Simpson-Bowles deficit reduction plan with $4 trillion in savings on an up or down vote.

LyrArc Article Gist
Defense Secretary Gates does not see Russia as the threat it was in the Cold War, first because Russia's conventional forces are a "shadow" of what they were during the Cold War, and Russia has adverse demographic trends that will diminish Russia's ability in conventional forces. He sees the Georgian war in the context of Russia's seeking to exorcize, as he puts it, past humiliations. And Gates sees opportunities in the relationship with Russia. Such things as Russia's willingness to work with the US on Afghanistan. Evidence of this is Russia supporting the renwal of the UN resolution on Afghanistan. Another indication is that Russia he says is very worried about the drugs coming out of Afghanistan, and has been supportive to provide alternative routes for Europeans to get equipment and supplies into Afghanistan. These views come across in an interview on December 17, with Charlie Rose, a five time elected Congressman, for the PBS Charlie Rose show. They are also reflected in an article in Foreign Affairs journal's current issue. Gates was a CIA analyst and has some insightful observations. Gates told Charlie Rose that he does not see the Islamic radicals and violent Islamic extremists as a threat in the same way as the threat in the Cold War years. This threat is not as big as the threat to freedom during the Cold War. He says the failure in strategic communications was huge as agencies of the US government engaged in activities in other countries, like the Agency for International Development and the US Information Agency, were neglected starting in the in the 1990's. Communications in other countries of what the US represented and stands for was left to the Pentagon, a role the Pentagon was ill-suited for. He sees the Islamic terrorism as more of an ideological conflict. Speaking at a town hall meeting at the Balad Air Force base in Iraq, in December, Gates pointed to these communications failures as a real challenge for the new administration. But he now sees a huge opportunity in this past failure, and ways of addressing it creatively, in addition to commiting resources and people to this effort. Walter Pincus wrote this article, and its part of the fineprint analysis effort at the Washington Post in which speeches, reports, and other documents are examined by people like Pincus, to catch the really important things, uncovering the fine print that really makes the headlines. Another aspect of this fineprint effort is that there are a huge number of reports, and speeches and documents that had a tone reminiscent of the Cold War during the Georgia war and yet they do not correctly reflect the real situation about Russia, as Gates sees it from his analysis of what is actually happening. Gates has used Foreign Affairs, the Dec 17 Charlie Rose Show on PBS in which he was interviewed, and the speech at the Balad Air Force base in Iraq, to communicate his views and analysis. They are important to underline and emphasize precisely because they show that all that cold war hysteria reporting and speeches may be misleading and lead to improper conclusions and mistakes in policy, wasted effort, wasted resources, and lost lives. And just as the US strategic communications was starved of resources and effort, so also this necessary work to retrieve and give emphasis to the important things is neglected. One additional link to this is the speech, discussion, and QA session in Washington DC at the time of the G20 summit in which President Medvedev and the new administration's elder statesman and diplomat Marilyn Albright, former secretary of state, expressed their hopes and plans for a new era in Russian-American relations. ...

LyrArc Article Gist
Washington Post Analysis and details of Census Bureau trade information in September 2025 -showing the country by country and product tariffs by US and which tariffs are waiting for final trade agreements. China, India and Switzerland, Mexico face high tariffs. UK, EU, South Korea, Japan have made trade agreements with the US, China, India Swiss are still to finalize trade agreements leading to the uncertainty. The North American Trade Agreement is being renegotiated leading to uncertainty for Mexico and Canada which have both benefitted from trade with the US to detriment of US manufacturers.  China has huge surpluses that keep growing over time to $1 trillion ($992 billion) a year in 2024.  DJT Tariffs are designed as a bold step to remake the international trading system so that it does not work to the benefit of other nations gaming the system over decades as US administrations Clinton, Bush, Obama, paid no attention. Trade Deficits and the National Debt are a problem not just the National Debt. On the National Debt Republicans have pushed through cuts in parts of the budget where costs had escalated tremendously. ...

LyrArc Article Gist
Indian oil minister Hardeep Singh Puri says India has diversified its sourcing of oil supplies to avoid dependence on the Straits of Hormuz. It has weeks of reserves. Saudis have 5 million barrel a day pipeline to bypass Hormuz waterway and UAE 1.5 million barrel a day pipeline to bypass Hormuz waterway, so that 6.5 million barrels a day could be added to meet Asian oil demand, in addition to convoys escorted by US warships  in Hormuz waterway to meet demand from China, India and Japan. This would mean China is itself dependent on American seapower to maintain it's oil supplies, a third of which come through the Hormuz waterway and keep important sealanes of navigation open. China, India, Japan, and other World are critical for the world economy manufacturing sector and comprise 3.5  billion or about half of the world's population. In addition Latin America and Africa are dependent on oil supplies and prices.  New pipelines, renewable energy, will become more important in the years ahead, and figure more in planner's minds after this Hormuz episode. ...

LyrArc Article Gist
The Case-Shiller 20 city Index showed a gain of 1.6% from the prior month in July 2012, and an increase of 5.9% year to date through July 2012. Experts say some of this improvement comes from less short and foreclosure sales which boost pricing data.

LyrArc Article Gist
The uncertainty that hangs over Iraq after the American withdrawal. Religious reconciliation and sectarian reconciliation is fragile. There is a push for autonomy in the provinces. There is a fear of Iranian backed militias in some areas. A prominent Iraqi singer says "all of Iraq is sad."

LyrArc Article Gist
Rumelt argues that efforts to induce aconsumption led recovery won't work in 2011-2012 because of the high debt to income ratio of American households, reminiscent of the situtation in the 1930's as America went into World War II. It took a long period of over a decade to bring debt to income ratios down during the 1940's to 20% for America to once again stage a consumption based recovery. Since the solution of war time engagment and lower consumer spending due to wartime rationing is not a feasible solution today, a lot depends on stimulating investment. Rumelt does not say how this would happen in practice as corporations invest to increase production in a consumer based economy. Corporations can invest on increasing production for growing emerging markets such as India, China and Brazil, and this is happening today. But this does not increase growth in the U.S. economy, except in the limited sense that some of the high end development work takes place in the U.S. Policies that stimulate investment would set the stage for a future recovery. ...

LyrArc Article Gist
Applebaum talks to two researchers at the University of Chicago and Princeton, Prof. Sufi and Prof. Mian, on the record of U.S. president Obama and Fed chairman Bernanke in helping homeowners facing foreclosure and underwater borrowers, comparing that record with their record in helping the banks. The issue is relevant as the policy and handling of homeowners had to be part of an overall effective plan for recovery in the U.S. economy, because ultimately without the U.S. consumer any recovery would be weak in the long run- a situation the U.S. faces in early 2014. The response to the issue of irresponsible homeowners borrowing beyond the limit without an equally robust response to irresponsible bank management that allowed wildly excessive leveraging of assets, and successful aggressive lobbying by banks in a shortsighted policy of going through with a wave of foreclosures; besides creating questions of fairness and equitable handling of the problem, also had major ramifications for the future of the U.S. and global economic growth. Here Christina Romer and other administration advisors say Bernanke was right in tackling the problem from the perspective of the banks needing to be recapitalized. Thoughtful advisors looking at the entire problem, Martin Feldstein and Sheila Bair strongly pushed for providing the same help to homeowners without getting caught up in the issue of who was responsible home buyers or the banks, and looking at the interests of the U.S. economy and the U.S. people. Proposals by Feldstein and Bair were equally robust in helping banks as they were in helping homeowners, only the banks understood their interests narrowly and had more access to policymakers in the Bush, as well as the Obama administration, Paulson as well as Geithner. This leaves us with the ultimate irony of the Obama administration pushing for the minimum wage, even to the point of electoral posture, when lasting damage had been inflicted on homeowners from the weaker portions of America's middle class by a policy that went against what two respected financial and economic experts from the Reagan period, Sheila and Bair had strongly advocated. See links and groups on Feldstein and Bair. Applebaum has followed most aspects of this problem closely and continues to provide exceptional reporting including the piece on the thinking of new Fed chairman, Janet Yellen. Private enterprise rules that require management at banks just as for other companies to take responsibility for failures, and be replaced with new management, was largely avoided leading to a fundamental failure in how a free market economy such as the U.S. and western European economies are supposed to function. Rules aggressively pushed by Geithner's mentor Treasury Secretary Rubin for a vigorous cleanup at banks in South Korea during a similiar situation in 1997, were not followed in any way here, also setting wrong precedents for the long run. ...