“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”.

Wednesday is  Ladies’ Day

Follow us on Twitter @StarsHollowGzt

Katrina vanden Heuvel: The corporate ‘predator state’

Bipartisan agreement in Washington usually means citizens should hold on to their wallets or get ready for another threat to peace. In today’s politics, the bipartisan center usually applauds when entrenched interests and big money speak. Beneath all the partisan bickering, bipartisan majorities are solid for a trade policy run by and for multinationals, a health-care system serving insurance and drug companies, an energy policy for Big Oil and King Coal, and finance favoring banks that are too big to fail.

Economist James Galbraithcalls this the “predator state,” one in which large corporate interests rig the rules to protect their subsidies, tax dodges and monopolies. This isn’t the free market; it’s a rigged market.

Maureen Dowd: Courting Cowardice

As the arguments unfurled in Tuesday’s case on same-sex marriage, the Supreme Court justices sounded more and more cranky.

Things were moving too fast for them.

How could the nine, cloistered behind velvety rose curtains, marble pillars and archaic customs, possibly assess the potential effects of gay marriage? They’re not psychics, after all.  [..]

While Justice Alito can’t see into the future, most Americans can. If this court doesn’t reject bigotry, history will reject this court.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

March 27 is the 86th day of the year (87th in leap years) in the Gregorian calendar. There are 279 days remaining until the end of the year.

On this day in 1939, March Madness is born.

The University of Oregon defeats The Ohio State University 46-33 on this day in 1939 to win the first-ever NCAA men’s basketball tournament. The Final Four, as the tournament became known, has grown exponentially in size and popularity since 1939. By 2005, college basketball had become the most popular sporting event among gamblers, after the Super Bowl. The majority of that betting takes place at tournament time, when Las Vegas, the internet and office pools around the country see action from sports enthusiasts and once-a-year gamblers alike.

For the first 12 years of the men’s tournament, only eight teams were invited to participate. That number grew steadily until a 65-team tournament format was unveiled in 2001. After a “play-in” game between the 64th and 65th seeds, the tournament breaks into four regions of 16 teams. The winning teams from those regions comprise the Final Four, who meet in that year’s host city to decide the championship.

March Madness is a popular term for season-ending basketball tournaments played in March, especially those conducted by the National Collegiate Athletic Association (NCAA) and various state high school associations. Fans began connecting the term to the NCAA tournament in the early 1980s. Evidence suggests that CBS sportscaster Brent Musburger, who had worked for many years in Chicago before joining CBS, popularized the term during the annual tournament broadcasts. The phrase had not already become associated with the college tournament when an Illinois official wrote in 1939 that “A little March Madness [may] contribute to sanity.” March Madness is also a registered trademark, held jointly by the NCAA and the Illinois High School Association. It was also the title of a book about the Illinois high school tournament written in 1977 by Jim Enright.

H. V. Porter, an official with the Illinois High School Association (and later a member of the Basketball Hall of Fame) was the first person to use March Madness to describe a basketball tournament. Porter published an essay named March Madness in 1939 and in 1942 used the phrase in a poem, “Basketball Ides of March.” Through the years the use of March Madness picked up steam, especially in Illinois, Indiana, and other parts of the Midwest. During this period the term was used almost exclusively in reference to state high school tournaments. In 1977 the IHSA published a book about its tournament titled March Madness.

Only in the 1990s did either the IHSA or NCAA think about trademarking the term, and by that time a small television production company named Intersport, Inc., had beaten them both to the punch. IHSA eventually bought the trademark rights from Intersport and then went after big game, suing GTE Vantage, Inc., an NCAA licensee that used the name March Madness for a computer game based on the college tournament. In a historic ruling, “Illinois High School Association v. GTE Vantage, Inc.” (1996), the United States Court of Appeals for the Seventh Circuit created the concept of a “dual-use trademark,” granting both the IHSA and NCAA the right to trademark the term for their own purposes.

Following the ruling, the NCAA and IHSA joined forces and created the March Madness Athletic Association to coordinate the licensing of the trademark and investigate possible trademark infringement. One such case involved a company that had obtained the Internet domain name marchmadness.com and was using it to post information about the NCAA tournament. After protracted litigation, the United States Court of Appeals for the Fifth Circuit held in March Madness Athletic Association v. Netfire, Inc. (2003) that March Madness was not a generic term and ordered Netfire to relinquish the domain name. (This domain name is currently being used to redirect into the main NCAA.com web site.)

In recent years, the term “March Madness” has been expanded to include all conference tournaments in college basketball, with the term “The Big Dance” being used more frequently when specifically referring to the NCAA Tournament. March Madness has also has been used generally to describe all basketball tournaments across the country that occur in the month of March – high school and college, male and female.

The coverage and live blogging of all the 2011 Men’s and Women’s NCAA Championship are happening here at The Stars Hollow Gazette.

Actor and comedian Jim Carrey took on the right win gun nuts and the gun lobbyist organization, the National Rifle Assosciation.

Jim Carrey’s ‘Cold Dead Hand’ Music Video Spoofs Gun Enthusiasts Like Charlton Heston

The late Charlton Heston might be rolling in his grave today thanks to Jim Carrey, who debuted a new satirical song about gun enthusiasts appropriately titled, “Cold Dead Hand.”

The Funny Or Die music video features Carrey and alt-rock band Eels as “Lonesome Earl And The Clutterbusters,” a country band on a TV show set inspired by the classic variety show, “Hee Haw.” Carrey also portrays the aforementioned Heston, who is continuously mocked throughout the song for his NRA spokesman-ship. Carrey even implies that Heston and all other gun enthusiasts buy weapons to compensate for having, um, “diminished” sexual organs.

Carrey, who has openly supported gun control, said in a release: “I find the gun problem frustrating and ‘Cold Dead Hand’ is my fun little way of expressing that frustration.”

I think Jim Carrey says it all in this Tweet

And here is the video that set them off.

Priceless.

Economist Richard Wolff discusses how austerity is making economic problems worse and the cure for these economic woes.

As Washington lawmakers pushes new austerity measures, economist Richard Wolff calls for a radical restructuring of the U.S. economic and financial systems. We talk about the $85 billion budget cuts as part of the sequester, banks too big to fail, Congress’ failure to learn the lessons of the 2008 economic collapse, and his new book, “Democracy at Work: A Cure for Capitalism.” Wolff also gives Fox News host Bill O’Reilly a lesson in economics 101.

   AMY GOODMAN: Professor Wolff, before we end, I want to turn back to the crisis in Cyprus and relate it to what’s happening here. Bill O’Reilly of Fox News warned his audience last week that Cyprus and other European countries are facing economic hardships because they’re so-called “nanny states.”

       BILL O’REILLY: Greece, Italy, Spain, Portugal, Ireland, now Cyprus, all broke. And other European nations are close. Why? Because they’re nanny states, and there are not enough workers to support all the entitlements these progressive paradises are handing out.

   AMY GOODMAN: That’s Bill O’Reilly of Fox News. Richard?

   RICHARD WOLFF: You know, he gets away with saying things which no undergraduate in the United States with a responsible economic professor could ever get away with. If you want to refer to things as nanny states, then the place you go in Europe is not the southern tier-Portugal, Spain and Italy; the place you go are Germany and Scandinavia, because they provide more social services to their people than anybody else. And guess what: Not only are they not in trouble economically, they are the winners of the current situation. The unemployment rate in Germany is now below 5 percent. Ours is pushing between 7 and 8 percent. So, please, get your facts right, Mr. O’Reilly.

   The nanny state, you call it, the program of countries like Germany and Scandinavia, who tax their people heavily, by all means, but who provide them with social services that would be the envy of the United States-a national health program that takes care of you, whether you’re employed or not, and gives you proper healthcare. In France, for example, the law says when you go to work, you get five weeks’ paid vacation. That’s not an option; that’s the law. You get support when you’re a new parent for your child care and so forth. They provide services. And they are successful in Germany and Scandinavia, much more than we are in the United States and much more than those countries in the south.

   So they’re not broken, the south, because they’re nanny states, since the nanny states, par excellence, are doing better than everyone. The actual truth of Mr. O’Reilly is the opposite of what he says. The more you do nanny state, the better off you are during a crisis and to minimize the cost of the crisis. That’s what the European economic situation actually teaches. He’s just making it up as he goes along to conform to an ideological position that is harder and harder for folks like him to sustain, so he has to reach further and further into fantasy.

H/t Heather at Crooks and Liars

Capitalism efficient? We can do so much better

by Richard Wolff, The Guardian

For all its vaunted efficiency, capitalism has foisted wasteful inequality and environmental ruin on us. There is an alternative

What’s efficiency got to do with capitalism? The short answer is little or nothing. Economic and social collapses in Detroit, Cleveland and many other US cities did not happen because production was inefficient there. Efficiency problems did not cause the longer-term economic declines troubling the US and western Europe.

Capitalist corporations decided to relocate production: first, away from such cities, and now, away from those regions. It has done so to serve the priorities of their major shareholders and boards of directors. Higher profits, business growth, and market share drive those decisions. As I say, efficiency has little or nothing to do with it.

Many goods and services once made in the US and western Europe for those markets are now produced elsewhere and transported back to them. That wastes resources spent on the costly relocation and consequent return transportation. The pollution (of air, sea and soil) associated with vast transportation networks – and the eventual cleaning up of that pollution – only enlarges that waste.

“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

Dean Baker: Senate Unanimously Votes Against Cuts to Social Security, Media Don’t Notice

There are few areas where the corruption of the national media is more apparent than in its treatment of Social Security. Most of the elite media have made it clear in both their opinion and news pages that they want to see benefits cut. In keeping with this position they highlight the views of political figures who push cuts to the program, treating them as responsible, while those who oppose cuts are ignored or mocked.

This pattern of coverage was clearly on display last weekend. Both the New York Times and Washington Post decided to ignore the Senate’s passage by voice vote of the Sanders Amendment. This was an amendment to the budget put forward by Vermont Senator Bernie Sanders that puts the Senate on record as opposing the switch to the chained CPI as the basis for the annual Social Security cost-of-living adjustment (COLA).

RobertReich: The Morality Brigade

We’re still legislating and regulating private morality, while at the same time ignoring the much larger crisis of public morality in America. [..]

The morality brigade worries about fetuses, but not what happens to children after they’re born. They and other conservatives have been cutting funding for child nutrition, healthcare for infants and their mothers, and schools.

The new House Republican budget gets a big chunk of its savings from programs designed to help poor kids. The budget sequester already in effect takes aim at programs like Head Start, designed to improve the life chances of poor kids.

Meanwhile, the morality brigade continues to battle same-sex marriage.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on image to enlarge

May 26 is the 146th day of the year (147th in leap years) in the Gregorian calendar. There are 219 days remaining until the end of the year.

On this day in 1637, an allied Puritan and Mohegan force under English Captain John Mason attacks a Pequot village in Connecticut, burning or massacring some 500 Indian women, men, and children.

The Pequot War was an armed conflict in 1634-1638 between the Pequot tribe against an alliance of the Massachusetts Bay, Plymouth, and Saybrook colonies with American Indian allies (the Narragansett and Mohegan tribes). Hundreds were killed; hundreds more were captured and sold into slavery to the West Indies. Other survivors were dispersed. At the end of the war, about seven hundred Pequots had been killed or taken into captivity. The result was the elimination of the Pequot as a viable polity in what is present-day Southern New England. It would take the Pequot more than three and a half centuries to regain political and economic power in their traditional homeland region along the Pequot (present-day Thames) and Mystic rivers in what is now southeastern Connecticut.

The Mystic massacre

Believing that the English had returned to Boston, the Pequot sachem Sassacus took several hundred of his warriors to make another raid on Hartford. Mason had visited and recruited the Narragansett, who joined him with several hundred warriors. Several allied Niantic warriors also joined Mason’s group. On May 26, 1637, with a force up to about 400 fighting men, Mason attacked Misistuck by surprise. He estimated that “six or seven Hundred” Pequot were there when his forces assaulted the palisade. As some 150 warriors had accompanied Sassacus to Hartford, so the inhabitants remaining were largely Pequot women and children, and older men. Mason ordered that the enclosure be set on fire. Justifying his conduct later, Mason declared that the attack against the Pequot was the act of a God who “laughed his Enemies and the Enemies of his People to scorn making [the Pequot] as a fiery Oven . . . Thus did the Lord judge among the Heathen, filling [Mystic] with dead Bodies.”  Mason insisted that any Pequot attempting to escape the flames should be killed. Of the estimated 600 to 700 Pequot resident at Mystic that day, only seven survived to be taken prisoner, while another seven escaped to the woods.

The Narragansett and Mohegan warriors with Mason and Underhill’s colonial militia were horrified by the actions and “manner of the Englishmen’s fight . . . because it is too furious, and slays too many men.” The Narragansett left the warfare and returned home.

Believing the mission accomplished, Mason set out for home. Becoming temporarily lost, his militia narrowly missed returning Pequot warriors. After seeing the destruction of Mystic, they gave chase to the English forces, but to little avail.

In the aftermath of 9/11 and the run up to the invasion of Iraq, the world was glued to television news, especially cable. Here in the US the news is dominated by three networks. CBS, ABC, and NBC and three major cable channels, CNN, Fox News and MSNBC. Most of the them spewed the Bush administration spin that Sadaam Hussein had weapons of mass destruction, was building a nuclear weapon and had ties to Osama bin Laden, Al Qaeda and 9/11, all lies and they knew it. This war was about the control of the oil reserves in Iraq, it always from the moment that the neocons got their hooks into the White House with Ronald Reagan’s election. It was under Reagan that the free press started to die with the end of the Fairness Doctrine and the loosening of regulation that allowed the likes of Rupert Murdoch to gobble up the airways, Fox news, and print media. It culminated in the 90’s with the corporate acquisition of NBC by General Electric and CBS by Viacom and CNN by Time Warner.

During the lead up to Iraq there was one voice on the airways that stood out against the hype, Phil Donahue, whose liberal voice focused on issues that divide liberals and conservatives in the United States, such as abortion, consumer protection, civil rights and war issues. His feud with another MSNBC host, Chris Matthews over the Iraq War led to the cancellation of Donahue’s popular show. Matthew’s involvement in the outing of CIA operative Valerie Plame is never mentioned.

I am not sure exactly when the death of television news took place. The descent was gradual-a slide into the tawdry, the trivial and the inane, into the charade on cable news channels such as Fox and MSNBC in which hosts hold up corporate political puppets to laud or ridicule, and treat celebrity foibles as legitimate news. But if I had to pick a date when commercial television decided amassing corporate money and providing entertainment were its central mission, when it consciously chose to become a carnival act, it would probably be Feb. 25, 2003, when MSNBC took Phil Donahue off the air because of his opposition to the calls for war in Iraq.

Donahue and Bill Moyers, the last honest men on national television, were the only two major TV news personalities who presented the viewpoints of those of us who challenged the rush to war in Iraq. General Electric and Microsoft-MSNBC’s founders and defense contractors that went on to make tremendous profits from the war-were not about to tolerate a dissenting voice. Donahue was fired, and at PBS Moyers was subjected to tremendous pressure. An internal MSNBC memo leaked to the press stated that Donahue was hurting the image of the network. He would be a “difficult public face for NBC in a time of war,” the memo read. Donahue never returned to the airwaves.

In 2003, the legendary television host Phil Donahue was fired from his prime-time MSNBC talk show during the run-up to the U.S. invasion of Iraq. The problem was not Donahue’s ratings, but rather his views: An internal MSNBC memo warned Donahue was a “difficult public face for NBC in a time of war,” providing “a home for the liberal antiwar agenda at the same time that our competitors are waving the flag at every opportunity.” Donahue joins us to look back on his firing 10 years later. “They were terrified of the antiwar voice,” Donahue says.

Transcript here

Democracy Now! host Amy Goodman confronted Matthews on Donahue’s firing outside NBC headquarters in New York City on the 10th anniversary of the invasion.

Buzzfeed unearthed the videos of the vitriolic exchanges between Matthew and Donahue revealing how much they despised each other. Matthews was the driving force that got Donahue fired and MSNBC was not eager to promote the anti-war point of view. Thank the internet for You Tube, here are the videos of the episode from Donahue’s show with guest Matthews:

As the dust of enthusiasm settles over this morning’s Cyprus deal with the European Union that closed the country’s second-largest bank and created a set of capital controls to prevent a run on the remaining banks, the financial world is taking a closer look and they aren’t happy. The agreement adheres to the law protecting insured accounts less than 100,000 euros. Supposedly, this deal prevented the immediate collapse of the Cyprus economy and its exit from the euro and, possibly, the European Union. Several economic analysts discuss the ramifications on the global banking and economy.

The Prodigal Greek has the simplest explanation of what capital controls entail (h/t Yves Smith):

Here is what a cash economy looks like:      

• Restrictions in daily withdrawals
• Ban on premature termination of time savings deposits
• Compulsory renewal of all time savings deposits upon maturity
• Conversion of current accounts to time deposits
• Ban or restrictions on non cash transactions
• Restrictions on use of debit, credit or prepaid debit cards
• Ban or restriction on cashing in checks
• Restrictions on domestic interbank transfers or transfers within the same bank
• Restrictions on the interactions/transactions of the public with credit institutions
• Restrictions on movements of capital, payments, transfers
• Any other measure which the Finance Minister or the Govern or of Cyprus Central Bank see necessary for reasons of public order and safety

In other words, Cyprus euros can only be spent in Cyprus and cannot be taken out of Cyprus to any other country; checks, debit and credit cards are useless. It is a strictly cash and carry local economy since Cypriots will not be able to make internet purchases. It will restrict travel into and out of the island, as well. The agreement has isolated the tiny island from the rest of the EU. Economics and financial analyst, Frances Coppola explains the ramifications of these restrictions:

From Tuesday, Cyprus becomes a black hole in the Eurozone: any money that goes into it stays there, and no money can leave……From a safe distance, it will appear frozen in time, a small cash-based economy, isolated from the rest of the EU. While inside, invisible to all except those who actually go there – or live there – its social fabric is torn apart as its economy collapses. Note the final clause in the capital control bill:

   Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety

So as people’s livelihoods are destroyed and their standard of living crashes, other measures may be introduced to ensure that they can’t take matters into their own hands.

From Yves Smith at naked capitalism is her summation of the attempt to contain Cyprus:

First, confiscating bank deposits is now on the table in any future crisis. That’s toothpaste that’s not going back in the tube. Commerzbank chief economist Jörg Krämer has already suggested (Google translates) “a one-time property tax levy” for Italy and “a tax rate of 15 percent on financial assets.” And adding fuel to the fire, the Leader of the UK Independence Party has urged expats in the periphery countries, in particular the 750,000 British in Spain to “Get your money out of there while you’ve still got a chance.”

Second, capital controls in Cyprus mean that there are now two Euros in effect: The Euro that you can use only in Cyprus, and the Euro you can use elsewhere in the so-called “monetary union.” So from the perspective of people in Cyprus, the results are in some ways worst that a breakup: rather than having depreciated dough, you have dough that has been impounded, particularly in terms of using it outside Cyprus. [..]

Third, these concerns may be amplified by how rapidly and visibly the Cypriot economy craters. The “rapidly” is due to the fact, as discussed in greater detail in the post from Cyprus.com below, that the Cyprus economy will suffer a one-two punch: the loss of a big chunk of wealth, plus the disappearance of much of the financial services sector, which was 45% of GDP.

The capital controls have isolated Cyprus from the rest of the EU without actually expelling the country.

The deal may have stayed the immediate crisis but it hasn’t stopped the eventual collapse of the Cyprus economy or its future exit from the euro. Not only that, it is the shot across the bow for other economically troubled EU countries of things to come.  

Gaius Publius of Americablog succinctly defined one of those vague terms that we heard so often since the banking crisis began in 2007, Credit Default Swaps (CDS) :

Credit default swaps are pure casino bets. They were originally designed as a form of insurance against bond and other credit defaults (“I’ll pay you a monthly fee and you pay me my losses if these bonds default.”)

It’s a simple concept, but CDSs soon evolved. Turns out you don’t have to actually hold the bonds to insure them. This means that one guy can sit at a table with a bunch of bonds (or bundles of mortgages), while another guy can insure them. Meanwhile, at 50 other tables, 50 more guys can buy the same “insurance” on the same bonds from anyone who will sell it to them. Keep in mind, only the first guy actually holds the bonds. The other guys just know they exist.

That’s 50 side-bets on one set of bonds. Placing side-bets on someone else’s property is like betting on a ball game you’re just watching. Like I said, pure casino money.

Do you see the problem? One guy’s bonds default and suddenly 51 guys in that room, everyone who sold “insurance,” they’re all wiped out. Why? Because the dirty secret of derivatives bets is that the people offering the “insurance” rarely have the money. They’re betting that they can collect “insurance” fees forever and the defaults will never come. That’s what happened with mortgage-backed bets in 2007, and that’s what’s happening today.

In 2010, the Democratic held Congress passed the Dodd-Frank Wall St. Reform and Consumer Protection Act to rein in the worst practices of the banks and Wall St. Needless to say, it is overly complicated, inadequate and has yet to be fully implemented.

That has not stopped the now Republican held House, along with some Democrats, to end some of the regulations. Less that week after Sen. Carl Levin released a scathing report on the $6.7 billion loss (pdf) of JP Morgan Chase in the infamous “London Whale” deal, the House Agriculture Committee, go figure that logic, approved seven bills that would gut regulation of the derivatives market and once again, if the banks lose, the tax payer makes good the losses. Sound familiar? Does TARP ring a bell? The housing market crash?

In his Salon article David Dayen asks if JP Morgan is a farmer?

It turns out that the Agriculture Committees have held jurisdiction over derivatives since the mid-19th century, when farmers used derivatives to achieve stability over future prices. Traders still use derivatives for corn and other commodities, but the world of derivatives has grown far more sophisticated over the decades. Nevertheless, congressional committees zealously guard their jurisdictions, and so a bunch of lawmakers from rural states get to determine a major aspect of financial policy. [..]

To see how this all works, just look at the hearing on these derivatives bills, held last week. When Ag Committee chairman Frank Lucas wasn’t openly parroting industry scare tactics about energy price spikes from regulation, he called on a list of witnesses that included four industry trade group representatives and one public advocate from Americans for Financial Reform, Wallace Turbeville. (He did great (pdf).) Or for an even clearer indication, read these PowerPoint slides created for Ag Committee staff by the Coalition for Derivatives End-Users, an industry-backed lobbyist organization. This extremely one-sided perspective on the issue simply becomes the default position for committee members and their staffs, an example of the “cognitive capture” in D.C. that sidelines alternative voices. And it all happens under the radar.

One of the Democratic House members who is sponsoring these bills, is Rep. Jim Himes, a former Goldman Sachs vice president who represents the Connecticut bedroom communities of Wall Street traders. It’s not hard to imagine why he defended his support of these bills when asked by the press. The Democratic members of the committee who voted with the 25 Republicans to send these bills to the House floor are: Pete Gallego (TX-23); Ann Kuster (NH-2); Sean Patrick Maloney (NY-18); Mike McIntyre (NC-07); David Scott (GA-13); and Juan Vargas (CA-51).

These are the bills that were passed by the committee:

H.R. 634 (pdf), the Business Risk Mitigation and Price Stabilization Act of 2013

·       H.R. 677 (pdf), the Inter-Affiliate Swap Clarification Act

·       H.R. 742 (pdf), the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013

·       H.R. 992 (pdf), the Swaps Regulatory Improvement Act

·       H.R. 1003 (pdf), To improve consideration by the Commodity Futures Trading Commission of the costs and benefits of its regulations and orders.

·       H.R. 1038 (pdf), the Public Power Risk Management Act of 2013

·       H.R. 1256 (pdf), the Swap Jurisdiction Certainty Act

Even if these bills all get passed, they will never see the light of day in the Senate.

Sheila Bair, the longtime Republican who served as chair of the Federal Deposit Insurance Corporation (FDIC) during the fiscal meltdown five years ago, joins Bill to talk about American banks’ continuing risky and manipulative practices, their seeming immunity from prosecution, and growing anger from Congress and the public.

“I think the system’s a little bit safer, but nothing like the dramatic reforms that we really need to see to tame these large banks, and to give us a stable financial system that supports the real economy, not just trading profits of large financial institutions,” Bair tells Bill.

“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: 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.