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”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman:A Heckuva Job

There are many things we should remember about the events of late August and early September 2005, and the political fallout shouldn’t be near the top of the list. Still, the disaster in New Orleans did the Bush administration a great deal of damage – and conservatives have never stopped trying to take their revenge. Every time something has gone wrong on President Obama’s watch, critics have been quick to declare the event “Obama’s Katrina.” How many Katrinas has Mr. Obama had so far? By one count, 23.

Somehow, however, these putative Katrinas never end up having the political impact of the lethal debacle that unfolded a decade ago. Partly that’s because many of the alleged disasters weren’t disasters after all. For example, the teething problems of Healthcare.gov were embarrassing, but they were eventually resolved – without anyone dying in the process – and at this point Obamacare looks like a huge success.

Beyond that, Katrina was special in political terms because it revealed such a huge gap between image and reality. Ever since 9/11, former President George W. Bush had been posing as a strong, effective leader keeping America safe. He wasn’t. But as long as he was talking tough about terrorists, it was hard for the public to see what a lousy job he was doing. It took a domestic disaster, which made his administration’s cronyism and incompetence obvious to anyone with a TV set, to burst his bubble.

Dean Baker: China stock panic could pop housing bubbles

Chinese economy will likely recover, but drop in commodity prices could have far-reaching effects in wealthy countries

One of the benefits of the massive inequality in the distribution of wealth is that the vast majority of us can sit back and enjoy the show when stock markets go into a worldwide panic, as they have been doing for the last couple of weeks. Despite what you hear in the media, fluctuations in the stock market generally have little direct or indirect impact on the economy. [..]

The price of a typical home in Canada is 13 percent higher than in the U.S., despite the fact that its per capita income is more than 20 percent lower. In Australia, with an average income that is 93 percent of the U.S. level, the median house price is almost twice the U.S. level. Market fundamentals don’t explain this gap; it’s hard to believe that people in Canada and Australia value housing so much that they are willing to pay a much larger share of their income for it.

If the plunge in commodity prices alerts potential homebuyers to the bubbles in their markets, we may see the unraveling of these bubbles, and that will not be a pretty picture.

New York Times Editorial Baoard:

Of all the electronic devices in American homes, the cable box is one of the hardest to use and probably one of the most expensive. A recent survey by two Democratic senators found that consumers spend on average about $231 a year to rent them.

People should be able to buy cable boxes from any manufacturer and connect them to their cable line or satellite dish as long as they meet basic technical standards. That could save Americans hundreds of dollars; it’s a one-time outlay, and the cost of the technology in set-top boxes, as with other electronics, is falling. Some companies sell them for less than $200.

The virtual monopoly that cable companies have over set-top boxes is reminiscent of the way AT&T used to require customers to rent phones from the company and prohibited them from using other devices. That ended after the Federal Communications Commission forced the company to let people connect telephones, radios and other equipment that were not made by AT&T in a 1968 decision known as Carterfone.

Robert Kuttner: We Are Asking Too Much of the Federal Reserve

There has been obsessive chatter about whether the Federal Reserve will, or should, raise interest rates this fall. At the Fed’s annual end-of-summer gabfest at Jackson Hole, Wyoming, the issue was topic A. [..]

The Fed is famous for raising rates prematurely, seeing ghosts of inflation. But there is no inflation on the horizon — the bigger worry is deflation. In fact, the inflation rate is well below the Fed’s own target of two percent. And the Fed is the only game in town.

On balance, I think the opponents of a rate hike have the better argument. But consider for a moment that last assumption — that the Fed is the only game in town.

The larger issue, which is getting submerged in the great debate about raising rates, is that the Fed should not be the only game in town.

Hillary Clinton and Sen. Tammy Baldwin (D-WI): To Restore Trust in Government, Slow Wall Street’s Revolving Door

One of our nation’s greatest strengths is that we are governed by each other — what President Lincoln celebrated as “a government of the people, by the people, and for the people.”

But increasingly, Americans’ trust in government is eroding. And a big reason for that is the so-called revolving door between government and the private sector.

Inviting outside voices into government is often a good thing. When public servants have experience beyond Washington, they bring new ideas, new perspectives, and new knowledge to the work of governing this huge, complicated country of ours. Some of America’s most dedicated public servants got their start in technology, business, academia, or other fields. Most of the time, that private-sector experience is an asset, not a liability.

But in some cases, it can affect the public trust — for example, if a public servant’s past and future are tied to the financial industry. That’s when people start worrying that the foxes are guarding the hen house.

Sen. Bernie Sanders (I-VT): High Drug Prices Are Killing Americans

All across the country, Americans are finding that the prices of the prescription drugs they need are soaring. Tragically, doctors tell us that many of their patients can no longer afford their medicine. As a result, some get sicker. Others die.

A new Kaiser Health poll shows that most Americans think prescription drug costs in this country are unreasonable, and that drug companies put profits before people. Want to know something? They’re right. [..]

This is not a partisan issue. Most Americans — Republicans, Democrats, and independents — want Congress to do something about drug prices. 86 percent of those polled, including 82 percent of Republicans, think drug companies should be required to release information to the public on how they set their prices. Large majorities support other solutions to the drug cost problem as well.