In early 2009, the Administration proposed to put the banks through “stress tests” to see how they’d survive more adverse scenarios. So why didn’t the economic team also have a test in case their own recovery plans proved to be insufficient?

These are hopeful days. The four horsemen of the establishment look like they are leaving the White House. Peter Orszag, who apparently was the most conservative of them all (and who just lobbied for more tax cuts for the rich), has left his position as head of the Office of Management and Budget. Larry Summers is leaving his position as director of National Economic Council. Rahm Emanuel might be out by October. And Tim Geithner is also rumored to be leaving after the election.

Three (sorta) “positive” stories about economic stimulus all came together in the last couple of days. They suggest that even when the forces of darkness are trying their hardest to make us stupid, it’s possible we can actually sort out the truth.

Orszag’s maiden voyage at the New York Times entitled “One Nation, Two Deficits,” is full of myths, and that’s the polite way to say it. I’ll review these and comment on each of them one-by-one.

Former OMB Director Peter Orszag gives us an absurd argument for why we should extend Bush tax cuts for the richest two percent of Americans for another two years but end the Bush tax cuts for everyone by 2013. To get there, Orszag has to ignore both economics and fairness and use logic and political arguments only when convenient.

If there’s a social program left standing in the moonscape Obama’s Hamilton Project masters inflicted on America, Greenstone and the Project are there to ensure Obama nukes it.

If someone you care deeply about depends on Social Security – or will depend on Social Security – call them up today and tell them you love them. Because Team Obama has targeted Social Security…and your loved ones are just the MOTU’s version of collateral damage.

Deaths you can believe in, right?

While defending the cost-cuting measures in the health reform bill, Budget Director Orszag and Health adviser Nancy-Ann DeParle slip in one whopper with cheese when describing the excise tax escalation rates.

This morning the NYT reports President Obama’s ready to throw the public option under the insurance companies limousines.

According to The Associated Press, Health and Human Services Secretary Kathleen Sebelius is suggesting the White House is ready to accept nonprofit insurance cooperatives instead of a government-run public option in a health overhaul plan.

Speaking on CNN’s “State of the Union,” Ms. Sebelius says Mr. Obama still believes there should be choice and competition” in the health insurance market — but that a public option is “not the essential element.”