Chad Orzel shows that college is not expensive because faculty are overpaid.
A good question: what stock do you put in predictions from flawed theories? (The usual questions are how flawed, and why; answers may indicate that bad theories aren't decisive.)
Frankel says the bailouts have been successful in their primary goal, which was to prevent the immediate onset of Great Depression 2. I agree strongly. He says "helping some undeserving financiers would be an undesirable but necessary side-effect." Also true, but there's much reason to believe that the bailout architects weren't aggressively trying to minimize the side effect (cf. enormous amounts of econoblogging on parameters of a good bailout from Fall 2008). The governments need the money, a (small) transactions tax raises it from the right people, and there's activity of dubious social utility that would be driven down towards optimal levels with the addition of a little friction.