Obama is playing politics<br />

FDR was plainly confident when he indicted the “practices of unscrupulous money lenders” during his 1933 inauguration address; Obama’s speech yesterday was scented with desperation. He exchanged eloquence for provocation. “If these folks want a fight a fight, it’s a fight I’m ready to have.”

Bankers do not want a fight with a President seeking cheap political capital; they want to turn profits and do business. Obama’s proposals frustrate that aim – by carving up corporations and neutering investment banking on the grounds of excess risk. As Iain Martin notes, Obama has departed from the G20’s emerging narrative, and though the details are imprecise there is no doubt of the direction Obama is headed. It is the wrong one. As a leader in The Times puts it:

‘But banks created the crisis not because of size but out of cluelessness. A typical bank is many times more highly leveraged than a hedge fund.