Epstein Secrets

1994 1998 2002 2006 Note: Real spending adjusted for inflation. Fiscal year ends in September. Source: White House Office of Management & K P Budget, Bureau of Labor Statistics. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 385 Increase Employment — High-Level Policy Options to Consider Short-run option

4 3 3 SAP 500MKtCap (ST) $5 _-$6_—$8_$10_$12_$12_ $10 $8_$10 Sit _$i1 S13 sis se $10 $11 (@E) www.kpcb.com Note: 2010 data as of 12/31/10. Source: FactSet, Bloomberg. USA Inc. | What Might a Turnaround Expert Consider? 370 HOUSE_OVERSIGHT_021026 But USA Inc. Has Steadily Scaled Back Investment in Tech

America as of 2010) rose to 4.8% of GM’s annual expenses and $4,679 in annual pension payments per worker to former workers. Source: General Motors, FactSet, DataStream, History News Network. www.kpcb.com USA Inc. | Consequences of Inaction 432 HOUSE_OVERSIGHT_021057 Comparing GM & USA, Inc... General

nts to 7% in 2009 from 9% in 2000, while government employee union membership rate rose 50 basis points 37.4% in 2009 from 36.9% in 2000. KP Source: Bureau of Labor Statistics. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 343 Review Unions: Union Membership Rates by Industry — Government = 37% Unionize

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 —— Freddie Mac — Fannie Mae Note: HUD is Department of Housing and Urban Development. Source: FactSet. a USA Inc. | Income Statement Drilldown 196 HOUSE_OVERSIGHT_020939 Fannie Mae & Freddie Mac: Accounted for Majority of Total Residential Mortgage

c-12 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: CBO, Bloomberg. Assumes CBO Alternative Case for estimates. Source: Federal Reserve Board ,Bureau of Labor Statistics . They are amazing, but no one knows how long they can be sustained. Even Summers and DeLong concede that “even if it is granted that the stimulus c

reland 96 Commercial RE exposure % of bank assets None 12/30/2011 01/31/2012 02/29/2012 03/28/2012 Encumbered banking system assets, % Greece Source: FactSet. World Bank labor rigidity, Europe None The place that worries me the most: Spain. It ranks at or |!ntra-European real effective exchange rate Italy