Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

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Paul Krugman: Hot Money Blues

Whatever the final outcome in the Cyprus crisis – we know it’s going to be ugly; we just don’t know exactly what form the ugliness will take – one thing seems certain: for the time being, and probably for years to come, the island nation will have to maintain fairly draconian controls on the movement of capital in and out of the country. In fact, controls may well be in place by the time you read this. And that’s not all: Depending on exactly how this plays out, Cypriot capital controls may well have the blessing of the International Monetary Fund, which has already supported such controls in Iceland.

That’s quite a remarkable development. It will mark the end of an era for Cyprus, which has in effect spent the past decade advertising itself as a place where wealthy individuals who want to avoid taxes and scrutiny can safely park their money, no questions asked. But it may also mark at least the beginning of the end for something much bigger: the era when unrestricted movement of capital was taken as a desirable norm around the world.

David Dayen: Banks Are Too Big to Fail Say … Conservatives?

Intellectuals on the right are coming around to the idea that our biggest financial institutions could use a little regulation.

Members of the Federal Reserve don’t usually make the rounds at partisan gatherings. But amid the tri-cornered hats and “#StandWithRand” buttons of last week’s Conservative Political Action Conference (CPAC)-the largest annual gathering of conservatives in the country-was Richard Fisher, president of the Dallas Federal Reserve Bank. In a Saturday morning speech, Fisher quoted Revolutionary War hero Patrick Henry, who once said that while “Different men often see the same subject in different lights,” such quibbling had to be set aside in a time of “awful moment to this country.”

Fisher described the current time as an era of economic injustice in which the nation’s largest banks threaten our financial stability and act with immunity. He said that the Dodd-Frank financial reform law did not go nearly far enough to fix the problem, and that mega-banks still profited from being “Too Big to Fail.” His solutions included a proposal to limit the total assets held by the biggest financial institutions, keeping them at a size that would make them “small enough to save.” And he called on citizens of all political stripes to join him in this cause. “The American people will be grateful to whoever liberates them from a recurrence of taxpayer bailouts,” Fisher concluded. It was an indication of just how bipartisan the support for breaking up the big banks has become.

Dean Baker: Neither the NYT nor Washington Post Has Heard About Unemployment

It’s apparently hard to find out about the state of the U.S. economy in the nation’s capital. That is the only way to explain the fact that in their articles on the budget passed by the Senate last night neither the NYT or Washington Post said one word about how the budget would affect the economy over the next decade. [..]

However, neither the NYT or Post could be bothered mentioning the millions who are suffering unemployment as the direct result of government policy. Instead the NYT told us in the first sentence that the budget will:

“trim spending gingerly and leave the government still deeply in the debt a decade from now.”

Shea Howell: Thinking for Ourselves: On Disaster Capitalism in Detroit

The appointment of Kevyn Orr as the Emergency Manager of Detroit is a sad day for democracy. There is a growing understanding that the financial crisis justifying this move was manufactured by the withholding of state funds, the drive to protect the $474 millions paid to banks, and the desire to wrest control of the city away from its people and put it into the hands of the corporate elite. Further, we know that nowhere in the state have emergency managers solved any structural problems. Nor have they improved services. They have sold off city assets, shifted common responsibilities for public health, safety, and the general good into private hands for windfall profits. They have set aside contracts for immediate services and compacts made across generations. [..]

The anguish of this moment is beyond words. It forces us to look deeply into our own history to find ways to remind one another of the kind of future we wish for ourselves and our children.

Bill McKibben: Confronting a Senate Beholden to ‘Big Oil’

An update on the battle to stop the Keystone XL pipeline

After a very chaotic week on Capitol Hill, I wanted to write you with an update on what happened in the Senate on Friday.

First and foremost: the oil industry’s Senators did not manage to pass legislation that would force President Obama to build Keystone XL.

Because you – people all across the country – jumped into action this week, they backtracked and instead held a vote on a nonbinding resolution that says it would be nice to build the pipeline, but doesn’t actually do much about it. For that vote, they got the stomach-churning number of 62 Senators to vote with them. As usual, the ones who had taken the most money from the fossil fuel industry lined up to cast their votes-the cosponsors of the bill, on average, had taken $807,000 in dirty energy money.

Jared Bernstein: Got Any Spare Change (Theory)?

As I’ve written many times, my experiences on the road and in the media often leave listeners and viewers saying “wow, those are really convincing, cogent, and well-documented arguments… but what should we do with them?” To which I do not have satisfactory answers.

To the contrary, I suspect the Koch brothers are perfectly happy to have folks like me running around arguing about the correct deflator to use or the percent of the Ryan budget’s spending cuts affecting low-income programs, while they continue to buy “research” that says otherwise and policies that exacerbate inequality.

That doesn’t mean we give up on factual analysis. It’s what we do best and I will not be convinced that facts are irrelevant.