Paulson Makes a Killing on Citi

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"UK economy shrinks 0.5%" [Financial Times] UK economy shrinks a 0.5 percent: Austerity model questioned: "The Office for National Statistics said on Tuesday that the nation's GDP fell by 0.5 per cent in the quarter, rather than rising by the 0.5 per cent rate that was the average forecast of a poll of economists conducted by Thomson Reuters. The economy expanded by 1.2 per cent and 0.7 per cent in the second and third quarters of the year respectively."

Paulson Makes a Killing on Citi [Bloomberg Businessweek] "Paulson & Co., the $35.9 billion hedge fund run by John Paulson, told clients that it made more than $1 billion on its Citigroup Inc. investment in the past 18 months. Citigroup, which surged 43 percent last year, was the fund's most profitable bank holding last year, Paulson said in a letter to clients this month."

"Alternative Fuels Don't Benefit the Military, a RAND Report Says" [NY Times]

"The United States would derive no meaningful military benefit from increased use of alternative fuels to power its jets, ships and other weapons systems, according to a government-commissioned study by the RAND Corporation scheduled for release Tuesday."

QE2 Likely to Continue [Bloomberg] "The Federal Reserve will probably push forward with $600 billion in securities purchases even as the biggest jump in business loans in more than two years adds to signs the U.S. economy is gaining strength. Commercial and industrial loans increased at an annual rate of 7.6 percent last month, the largest gain since October 2008, according to Fed data. Total bank credit has risen in three of the past six months as business loans cushioned against declines in real estate and consumer credit."

Republican Congressman Paul Ryan to Take Center Stage [Wall Street Journal]

"When Rep. Paul Ryan delivers the Republican response to President Barack Obama's State of the Union address Tuesday, many viewers will get their first look at a man whom GOP leaders are trusting to manage a central policy issue-how to cut the federal budget-that could shape the party's image for years. While unknown to most Americans, Mr. Ryan, 40 years old, has established himself as a leading conservative thinker on federal spending, shaped in part by his early work for supply-side icon Jack Kemp."