Osawatomie: Obama's Wonderfully Wrongheaded Speech

Today, President Obama gave a wonderful speech in Osawatomie, Kansas, on the dangers of income inequality and the need to bolster the American middle class.  It was chock full of the inspiring rhetorical flourishes which rallied so many to then-Senator Obama four years ago.

"Inequality also distorts our democracy," the President said. "[I]t leaves everyone else rightly suspicious that the system in Washington is rigged against them."  He implored everyone, from Wall Street to Main Street, to play by the same rules.

And then he wasted his time and energy criticizing Republican obstructionism and "calling for legislation" to strengthen anti-fraud laws "so that firms don’t see punishment for breaking the law as just the price of doing business."  Gestures that will neither appease the President's critics or accomplish much of anything.

Four years ago, this speech might have inspired me.  "Aha!" I would have said, "The President gets it!"  He does get it: he knows full well the Republicans in Congress will do nothing to strengthen financial regulations.  It's empty rhetoric.  It's partisan pandering.

If the President were serious about sending a message about equality, his Administration would be knocking on Wall Street's door, SWAT teams in the rear.  In the current political climate, the President's best way to send a message is to rely on the levers of power within the Executive Branch to get things done.

On that count, the President has done next to nothing to make Wall Street play by the same rules as Main Street.  The SEC covers up the crimes of Wall Street banks.  His Justice Department actively works against states trying to place legal pressure on the financial sector.  The FBI's "Operation Broken Trust," an effort to combat financial fraud, absurdly targeted "penny-stock frauds, a husband-and-wife team charged in an insider trading case and mini-Ponzi schemes."

Not a single solitary criminal case has been brought against a big-time corporate official.  No one on Wall Street was even aware of Operation Broken Trust.

The President can blame Republican intransigence all he wants, but as he accepts millions in campaign dollars from the financial sector, he ought to look in the mirror, as well.  There is little doubt that there is broad-based bipartisan support among Tea Partiers and Occupy Wall Street protestors for increased policing of Wall Street.

The President simply hasn't done that.  He's implored the banks to behave better.  Asked Congress to toughen some laws.  And done nothing to combat the rising tide of economic inequality generated by crooks on Wall Street.