Sunday, March 7, 2010

The Up-or-Down Vote on Obama’s Presidency

March 7, 2010

WEDNESDAY’S health care rally was one of President Obama’s finest hours. It was so fine it couldn’t be blighted even by his preposterous backdrop, a cohort of white-jacketed medical workers large enough to staff a hospital in one of the daytime soaps that refused to be pre-empted by the White House show.

Obama’s urgent script didn’t need such cheesy theatrics. At last he took ownership of what he called “my proposal,” stating concisely three concrete ways the bill would improve America’s broken health care system. At last he pushed for a majority-rule, up-or-down vote in Congress. At last he conceded that bipartisan agreement between two parties with “honest and substantial differences” on fundamental principles wasn’t happening. At last he mobilized his rhetoric against a villain everyone could hiss — insurance companies. In a brief address, he mentioned these malefactors of great greed 13 times.

There was only one problem. This finest hour arrived hastily and tardily. At 1:45 p.m. Eastern time, who was watching? Of those who did watch or caught up later, how many bought the president’s vow to finish the job “in the next few weeks”? We’ve heard this too many times before. Last May Obama said he would have a bill by late July. In July he said he wanted it “done by the fall.” The White House’s new date for final House action — specified as March 18 by Robert Gibbs, the press secretary — is already in jeopardy.

“They are waiting for us to act,” Obama said on Wednesday of the American people. “They are waiting for us to lead.” Actually, they have given up waiting. Some 80 percent of the country believes that “nothing can be accomplished” in Washington, according to an Ipsos/McClatchy poll conducted a week ago. The percentage is just as high among Democrats, many of whom admire the president but have a sinking sense of disillusionment about his ability to exercise power.

Now that we have finally arrived at the do-or-die moment for Obama’s signature issue, we face the alarming prospect that his presidency could be toast if he doesn’t make good on a year’s worth of false starts. And it won’t even be the opposition’s fault. If too many Democrats in the House defect, health care will be dead. The G.O.P. would be able to argue this fall, not without reason, that the party holding the White House and both houses of Congress cannot govern.

For the sake of argument, let’s say that Obama does eke out his victory. Republicans claim that if he does so by “ramming through” the bill with the Congressional reconciliation process, they will have another winning issue for November. On this, they are wrong. Their problem is not just their own hypocritical record on reconciliation, which they embraced gladly to ram through the budget-busting Bush tax cuts. They’d also have to contend with this country’s congenitally short attention span. Once the health care fight is over and out of sight, it will be out of mind to most Americans. We’ve already forgotten about Afghanistan — until the next bloodbath.

The 2010 election will instead be fought about the economy, as most elections are, especially in a recession whose fallout remains severe. But that battle may be even tougher for this president and his party — and not just because of the unemployment numbers. The leadership shortfall we’ve witnessed during Obama’s yearlong health care march — typified by the missed deadlines, the foggy identification of his priorities, the sometimes abrupt shifts in political tone and strategy — won’t go away once the bill does. This weakness will remain unless and until the president himself corrects it.

Those who are unsympathetic or outright hostile to Obama frame his failures as an attempt to impose “socialism” on a conservative nation. The truth is that the Fox News right would believe this about any Democratic president no matter who he was and what his policies were. Obama, who has expanded the war in Afghanistan and proved reluctant to reverse extra-constitutional Bush-Cheney jurisprudence, is a radical mainly to those who believe a conservative Republican senator like Kay Bailey Hutchison of Texas is a closet commie.

The more serious debate about Obama is being conducted by neutral or sympathetic observers. There are many hypotheses. In Newsweek, Jon Meacham has written about an “inspiration gap.” He sees the professorial president as “sometimes seeming to be running the Brookings Institution, not the country.” In The New Yorker, Ken Auletta has raised the perils of Obama’s overexposure in our fractionalized media. (As if to prove the point, the president was scheduled to appear on Fox’s “America’s Most Wanted” to celebrate its 1,000th episode this weekend.) In the Beltway, the hottest conversations center on the competence of Obama’s team. Washington Post columnists are now dueling over whether Rahm Emanuel is an underutilized genius whose political savvy the president has foolishly ignored — or a bull in the capital china shop who should be replaced before he brings Obama down.

But the buck stops with the president, not his chief of staff. And if there’s one note that runs through many of the theories as to why Obama has disappointed in Year One, it cuts to the heart of what had been his major strength: his ability to communicate a compelling narrative. In the campaign, that narrative, of change and hope, was powerful — both about his own youth, biography and talent, and about a country that had gone wildly off track during the failed presidency of his predecessor. In governing, Obama has yet to find a theme that is remotely as arresting to the majority of Americans who still like him and are desperate for him to succeed.

The problem is not necessarily that Obama is trying to do too much, but that there is no consistent, clear message to unite all that he is trying to do. He has variously argued that health care reform is a moral imperative to protect the uninsured, a long-term fiscal fix for the American economy and an attempt to curb insurers’ abuses. It may be all of these, but between the multitude of motives and the blurriness (until now) of Obama’s own specific must-have provisions, the bill became a mash-up that baffled or defeated those Americans on his side and was easily caricatured as a big-government catastrophe by his adversaries.

Obama prides himself on not being ideological or partisan — of following, as he put it in his first prime-time presidential press conference, a “pragmatic agenda.” But pragmatism is about process, not principle. Pragmatism is hardly a rallying cry for a nation in this much distress, and it’s not a credible or attainable goal in a Washington as dysfunctional as the one Americans watch in real time on cable. Yes, the Bush administration was incompetent, but we need more than a brilliant mediator, manager or technocrat to move us beyond the wreckage it left behind. To galvanize the nation, Obama needs to articulate a substantive belief system that’s built from his bedrock convictions. His presidency cannot be about the cool equanimity and intellectual command of his management style.

That he hasn’t done so can be attributed to his ingrained distrust of appearing partisan or, worse, a knee-jerk “liberal.” That is admirable in intellectual theory, but without a powerful vision to knit together his vision of America’s future, he comes off as a doctrinaire Democrat anyway. His domestic policies, whether on climate change or health care or regulatory reform, are reduced to items on a standard liberal wish list. If F.D.R. or Reagan could distill, coin and convey a credo “nonideological” enough to serve as an umbrella for all their goals and to attract lasting majority coalitions of disparate American constituencies, so can this gifted president.

He cannot wait much longer. The rise in credit-card rates, as well as the drop in consumer confidence, home sales and bank lending, all foretell more suffering ahead for those who don’t work on Wall Street. But on these issues the president, too timid to confront the financial industry backers of his own campaign (or their tribunes in his own administration) and too fearful of sounding like a vulgar partisan populist, has taken to repeating his health care performance.

And so leadership on financial reform, as with health care, has been delegated to bipartisan Congressional negotiators poised to neuter it. The protracted debate that now seems imminent — over whether a consumer protection agency will be in the Fed or outside it — is again about the arcana of process and bureaucratic machinery, not substance. Since Obama offers no overarching narrative of what financial reform might really mean to Americans in their daily lives, Americans understandably assume the reforms will be too compromised or marginal to alter a system that leaves their incomes stagnant (at best) while bailed-out bankers return to partying like it’s 2007. Even an unimpeachable capitalist titan like Warren Buffett, venting in his annual letter to investors last month, sounds more fired up about unregulated derivatives and more outraged about unpunished finance-industry executives than the president does.

This time Obama doesn’t have a year to arrive at his finest hour. Not to put too fine a point on it, but the clock runs out on Nov. 2.

Copyright 2010 The New York Times Company

Saturday, January 23, 2010

Poll: Mass. Voters Protested Against Weak Wall Street, Health Care Policies

First Posted: 01-20-10 11:07 AM | Updated: 01-20-10 05:16 PM

Sam Stein and Ryan Grim

Massachusetts voters who backed Barack Obama in the presidential election a year ago and either switched support to Republican Senate candidate Scott Brown or simply stayed home, said in a poll conducted after the election Tuesday night that if Democrats enact tougher policies on Wall Street, they'll be more likely to come back to the party in the next election.

A majority of Obama voters who switched to Brown said that "Democratic policies were doing more to help Wall Street than Main Street." A full 95 percent said the economy was important or very important when it came to deciding their vote.

In a somewhat paradoxical finding, a plurality of voters who switched to the Republican -- 37 percent -- said that Democrats were not being "hard enough" in challenging Republican policies.

It would be hard to find a clearer indication, it seems, that Tuesday's vote was cast in protest.

The poll also upends the conventional understanding of health care's role in the election. A plurality of people who switched -- 48 -- or didn't vote -- 43 -- said that they opposed the Senate health care bill. But the poll dug deeper and asked people why they opposed it. Among those Brown voters, 23 percent thought it went "too far" -- but 36 percent thought it didn't go far enough and 41 percent said they weren't sure why they opposed it.

Among voters who stayed home and opposed health care, a full 53 percent said they opposed the Senate bill because it didn't go far enough; 39 percent weren't sure and only eight percent thought it went too far.

The firm Research 2000 conducted the post-election survey Tuesday night on behalf of three progressive organizations -- the Progressive Change Campaign Committee, Democracy for America and MoveOn.org.

Taken from interviews of 500 Obama backers who voted in the Senate election and 500 Obama backers who sat out the election, the firm discovered that 18 percent of Obama backers who voted in the Senate race ended up casting ballots for Brown.

Of that group, 82 percent said they favored a public option for insurance coverage, with 14 percent opposed. Of those who sat out the election, 86 percent favored the public option, while only seven percent opposed it. The findings suggests that progressive arguments that disappointed Obama supporters deserted have serious merit.

UPDATE: With little, if any, historical precedent for the current situation in Congress, anything is possible on Capitol Hill over the next few weeks. Progressives have seized on the chaos and the polling numbers above to argue that the message voters sent was that Democrats haven't been bold enough. So far, more than 100,000 people have signed a petition calling for the Senate to put the public option back into the health care bill and pass it using the parliamentary maneuver known as reconciliation, which only requires 50 votes plus the vice president. Meanwhile, top Democrats are taking the idea seriously.

"Congressional Democrats have now been given fair warning by voters about what they expect in 2010: faster change, bolder change, and a willingness to fight big corporations on behalf of the little guy," said Adam Green, whose organization is leading the petition effort. "The Lieberman-Nelson strategy lost Ted Kennedy's Senate seat. Now it's time to push the public option through reconciliation -- and then, on to strong Wall Street accountability."

More details on the poll here and here.

Sunday, December 20, 2009

Overview of the Health Care Reform Bill as of 20 Dec 2009.

http://www.dailykos.com/storyonly/2009/12/20/816923/-An-Overview-of-the-New-Senate-Health-Bill

Good articles.

ARRA keeping millions from poverty.
http://www.cbpp.org/cms/index.cfm?fa=view&id=3035

Republicans' manual for delaying health care reform.
http://www.dailykos.com/story/2009/12/2/810117/-GOP-Obstruction-Manual-for-HCR

House passed wall street reform on 11 Dec 2009.

It's not as big as the huge backward step when Clinton and the Republicans eliminated Glass Steagall and thus enabled the recent economic disaster, but it is a step forward.

Diane Rehm 14 December 2009

http://wamu.org/programs/dr/09/12/14.php#29178

Consumer Reports
http://blogs.consumerreports.org/money/2009/12/cfpa-financial-regulation-house.html


Q&A by the AP
http://www.google.com/hostednews/ap/article/ALeqM5i9UE4Ip_QNvHp43cXXo1HQzApRngD9CHDR3G0

Huffington Post 11 December 2009
http://www.huffingtonpost.com/2009/12/11/house-passes-financial-re_n_389267.html

First Posted: 12-11-09 04:30 PM | Updated: 12-11-09 08:32 PM

In a close vote, the House of Representatives Friday afternoon passed a financial reform bill intended to re-regulate Wall Street and increase protections for Main Street.

The bill, passed in a 223-202 vote, calls for the creation of a new federal agency dedicated to protecting consumers that would police consumer credit products like mortgages and credit cards. It also establishes new rules for the trading of derivatives and increases the transparency of the credit-rating process -- two previously under-regulated parts of the economy that played a large role in last year's economic collapse.

Not a single Republican voted for the bill. Twenty-seven Democrats broke with the rest of their party to vote against it.

The measure includes language, introduced in committee by Reps. Ron Paul (R-Texas) and Alan Grayson (D-Fla.), that would authorize an expansive audit of the Federal Reserve, a landmark achievement for critics of the central bank's secretive operations.

The bill also requires systemically important banks to pay into a fund that would be used to break them up and sell them off if they go bankrupt. Republicans bitterly and inaccurately referred to it as a "bailout fund," telegraphing a critique that will undoubtedly re-emerge during the 2010 midterm elections.

"Today is an important milestone in reversing the decades-long stranglehold Wall Street and big banks have had over our economy. But it is just the first step," said Service Employees International Union Secretary-Treasurer Anna Burger. "Despite the millions Wall Street and the Chamber of Commerce spent fighting the demands of the American people and the dozens of visits by big bank CEOs to strong-arm members of Congress, our leaders found the political will and courage to pass the most historic financial reform legislation in nearly 80 years."

The fight to fundamentally reform financial regulations began soon after President Barack Obama took office. Public zeal, though, was tempered on Capitol Hill by bankers and other Wall Street titans, who united to fight against the kind of reform advocated by consumers, union groups, and academics.

The bill disappointed some consumer groups, who pledged to work to make it stronger as it moves to the Senate.

"The bill does very little to address industry structure," the consumer advocacy group Public Citizen said in a statement. "The biggest banks are now bigger than they were before the crisis."

Michael Calhoun, president of the Center for Responsible Lending, hailed the bill's creation of the Consumer Financial Protection Agency, but worried it goes too far in allowing federal regulators to preempt their state compatriots.

"The bill would provide consumers with significant protections from the industry practices that dismantled our economy and those of countries around the world," he said. "We commend the House for this vote to protect families and small business from unfair, unsafe financial practices. However, we remain concerned that the bill allows the same federal banking regulators whose inaction led to the current crisis to continue to ignore state law. That must be fixed as the legislation moves forward."

Despite the advocacy by financial luminaries like former Federal Reserve Chairman Paul Volcker, the bill does nothing to break up big banks or address the mixing of commercial and investment banking by giant firms like JPMorgan Chase and Goldman Sachs.

Barbara Roper, director of investor protection at the Consumer Federation of America, praised the part of the bill dealing with credit rating agencies -- with a caveat, though.

"If you accept the whole business model as a given, the rest of it is strong," she said, referring to the fact that the agencies are paid by bond issuers to rate their products, creating an inherent conflict of interest.

Specifically, the bill subjects the credit rating agencies to increased liability, allowing for aggrieved investors to sue. Also, thanks to Rep. Brad Sherman (D-Calif.), a provision was added mandating that the agencies owe a duty of care to investors, rather than just to the bond issuers that pay them, she said.

The bill takes a stab at regulating derivatives, but key reforms were either ignored or voted down. An amendment by Bart Stupak (D-Mich.) calling for increased transparency in trading, which was backed by a coalition of pro-reform advocates, was voted down 330-98.

Financial Services Committee Chairman Barney Frank offered another amendment regarding derivatives that would have beefed up the powers of federal regulators, who have long lacked critical authority to initiate meaningful regulation. That, too, died.

A third amendment would have banned those derivatives that are, in essence, used by big financial firms to place bets upon bets upon bets, like the kind pioneered by AIG that helped crash the financial system last year. It also was voted down.

"Basically, the financial houses and the big banks are working [these amendments] real hard," Stupak said. "Wall Street's been working hard. We've been tripping over them all week. They've won this round."

Public Citizen offered this explanation:

It's no mystery why this legislation is not stronger. Wall Street spent $5 billion in political investments in the decade before the financial crisis to obtain deregulation and non-enforcement of existing rules.


Despite Wall Street having crashed the economy, nothing has changed on Capitol Hill. Wall Street continues to invest heavily in politics and wield enormous influence. More than 900 former federal employees, including 70 former members of Congress, are working as lobbyists for the financial services sector this year. Wall Street has spent more than $40 million on campaign contributions since November 2008.

"It was the single most important they needed to get right if they wanted to protect the system from future crises, and I don't think they got it right," Roper said.

The bill also addressed investor protection, increasing it in some areas but weakening it in others. Shareholders will now be able to hold non-binding votes on executive compensation -- a big win for investor groups. But the bill also includes a provision that changes current law by exempting about half of all publicly-traded companies from having to get audits of their internal controls. Fraud will be harder to catch, investor groups argue.

The House also voted to kill what many experts, consumer advocates and economists believe to be the best -- and perhaps the only -- way to stem the rising tide of foreclosures: a provision that would have allowed judges to cut the principal for struggling homeowners in bankruptcy.

Belying their expressions of outrage towards banks and sympathy for struggling homeowners, enough Democrats joined Republicans to kill the amendment offered by Democrats John Conyers of Michigan and Jim Marshall of Georgia, by a 241-188 vote.

Bankruptcy courts may reduce several forms of debt for distressed borrowers, but not the mortgage on a primary residence. Judges can, however, alter loan terms on vacation homes and cars, for example.

In March, the House passed a bill that was "substantively identical" to today's amendment, according to a summary of the amendment provided by the chamber's Rules Committee. The Senate, however, voted it down, leading Sen. Dick Durbin (D-Ill.), a longtime advocate for homeowners, to conclude that banks "frankly own the place."

"The financial industry has so much invested in political influence, in lobbying, in campaign contributions, into having a local network through the local banks and the credit unions," said Rep. Brad Miller (D-N.C.). "It's just very hard to go up against that based upon a strong public policy objective."

Backers of the measure thought it had a reasonable chance of passage, since, after all, it had already passed, and the foreclosure crisis has only gotten worse. About one in seven homeowners with a mortgage are either delinquent or in foreclosure. The passage of time, however, gave banks a chance to work the halls.

"We got a vote for it earlier this year, but it took a huge effort. There was none of that effort this time. I think that leadership has been working other issues in the bill, but not that one. And there's enormous opposition to it," said Miller.

One in four homeowners with a mortgage are "underwater," meaning they owe more on the home than it's worth. The administration's $75 billion foreclosure-prevention effort does virtually nothing to help those homeowners, consumer advocates and economists argue.

Furthermore, since the program's launch in March, less than 32,000 troubled homeowners have received permanent relief through the government's mortgage modification plan. It's supposed to help three to four million homeowners avoid foreclosure.

"You would think that would be a strong argument for doing something about it," Miller said. "And with the continued foreclosure rate and the effect that's having on home values and the effect they're having on each other, being such a downward force on our economy. But there's just a united front of opposition by the financial industry. If some members are playing it by thinking, well, I'll give them this vote but then I'll vote for the CFPA, I guess I can see that calculation."

Marshall pinned some of the blame on Treasury Secretary Tim Geithner, who had been cool to the idea last spring.

"The leadership here in the House is a big friend to this bill. The White House, well, the Treasury Secretary made some comments earlier this year that I thought were unfortunate. Other than Geithner's comments, I haven't really heard anything else from the White House. Obviously it's not on their priority list, among the many things they don't have much of an opinion about. Though Geithner did say something, and I wish I could recall, he said something earlier this year that was chilling. Not that he said it was a bad idea, but it certainly wasn't an endorsement," said Marshall.

Candidate Obama supported the idea of allowing judges to modify mortgages in bankruptcy en route to the White House. He even expressed public support in February when outlining his plan to stem foreclosures. But it wasn't in his detailed plan released the next month. Since then, the White House has largely been silent.

President Obama cheered the House action Friday. "This legislation brings us another important step closer to necessary, comprehensive financial reform that will create clear rules of the road, consistent and systematic enforcement of those rules, and a stronger, more stable financial system with better protections for consumers and investors," he said in a statement.

But the loopholes in the bill and the reforms that were voted down revealed something else to Roper -- an apparent deep-seated hostility to government regulation.

Time and time again, Roper noticed various reform proposals killed on the specious claim that they would kill jobs. Looking beyond today's vote, there are deep, structural roadblocks to fundamental reform, she said.

"Even as they're trying to cure the regulatory failures that led to the current crisis, they're setting us up for future crises," she said. "It's a philosophy and attitude to regulation that suggests that as soon as the spotlight is off they will be back to attacking regulation as too costly."

The vote, she said, reveals "that the attitude, the underlying problem, has not changed, and will come back to haunt us in the future."

"It's hard to be all that enthusiastic when you know that nothing has changed," she said.

Monday, November 23, 2009

Excellent videos on financial reform.

http://www.youtube.com/watch?v=pfo9sFYULEE&feature=youtube_gdata

http://www.huffingtonpost.com/2009/11/19/ryan-grim-naomi-klein-dis_n_364022.html

http://www.youtube.com/watch?v=K_KOEypp3zQ

http://www.youtube.com/watch?v=SgfmwO8lDHQ&feature=fvsr

Sunday, November 8, 2009

The Night They Drove the Tea Partiers Down

November 8, 2009

http://www.nytimes.com/2009/11/08/opinion/08rich.html?hp=&pagewanted=print

FOR all cable news’s efforts to inflate Election 2009 into a cliffhanger as riveting as Balloon Boy, ratings at MSNBC and CNN were flat Tuesday night. But not at Fox News, where the audience nearly doubled its usual prime-time average. That’s what happens when you have a thrilling story to tell, and what could be more thrilling than a revolution playing out in real time?

As Fox kept insisting, all eyes were glued on Doug Hoffman, the insurgent tea party candidate in New York’s 23rd Congressional District. A “tidal wave” was on its way, said Sean Hannity, and the right would soon “take back the Republican Party.” The race was not “even close,” Bill O’Reilly suggested to the pollster Scott Rasmussen, who didn’t disagree. When returns showed Hoffman trailing, the network’s resident genius, Karl Rove, knowingly reassured viewers that victory was in the bag, even if we’d have to stay up all night waiting for some slacker towns to tally their votes.

Alas, the Dewey-beats-Truman reveries died shortly after midnight, when even Fox had to concede that the Democrat, Bill Owens, had triumphed in what had been Republican country since before Edison introduced the light bulb. For the far right, the thriller in Watertown was over except for the ludicrous morning-after spin that Hoffman’s loss was really a victory. For the Democrats, the excitement was just beginning. New York’s 23rd could be celebrated as a rare bright spot on a night when the party’s gubernatorial candidates lost in Virginia and New Jersey.

The Democrats’ celebration was also premature: Hoffman’s defeat is potentially more harmful to them than to the Republicans. Tuesday’s results may be useless as a predictor of 2010, but they are not without value as cautionary tales. And the most worrisome for Democrats were not in Virginia and New Jersey, but, paradoxically, in the New York contests where they performed relatively well. That includes the idiosyncratic New York City mayor’s race that few viewed as a bellwether of anything. It should be the most troubling of them all for President Obama’s cohort — even though neither Obama nor the national political parties were significant players in it.

But first let’s make a farewell accounting of the farce upstate. The reason why the Democratic victory in New York’s 23rd is a mixed blessing is simple: it increases the odds that the Republicans will not do Democrats the great favor of committing suicide between now and the next Election Day.

This race was a damaging setback for the hard right. Hoffman had the energetic support of Sarah Palin, Glenn Beck, Rush Limbaugh and Fox as well as big bucks from their political auxiliaries. Furthermore, Hoffman was running not only in a district that Rove himself described as “very Republican” but one that fits the demographics of the incredibly shrinking G.O.P. The 23rd is far whiter than America as a whole — 93 percent versus 74 — with tiny sprinklings of blacks, Hispanics and Asians. It has few immigrants. It’s rural. Its income and education levels are below the norm. Only if the district were situated in Dixie — or Utah — could it be a more perfect fit for the narrow American demographic where the McCain-Palin ticket had its sole romps last year.

If the tea party right can’t win there, imagine how it might fare in the nation where most Americans live. Some G.O.P. leaders have started to notice. Mitt Romney didn’t endorse Hoffman despite right-wing badgering to do so. On Wednesday, Michael Steele dismissed the right’s mantra that somehow Hoffman’s loss could be called a victory and instead talked up the newly elected Republican governors who won by appealing to independents and moderates. Chris Christie and Bob McDonnell are plenty conservative, but both had rejected Palin’s offers to campaign for them. They also avoided the tea party zanies, the fear-mongering National Organization for Marriage and the anti-abortion-rights zealots Hoffman embraced. They positioned themselves as respectful Obama critics, not haters likening him to Hitler.

In the aftermath of this clear-cut demonstration of how Republicans can win, the revolutionaries are still pledging to purge the party’s moderates by rallying behind more Hoffmans in G.O.P. primaries from Florida to California. And they may get some scalps. But Tuesday’s loss revealed that they’re better at luring freak-show gawkers into Fox’s tent than voters into the G.O.P.’s. As if to prove the point, protesters hoisted a sign likening health care reform to Dachau at the raucous tea party rally convened by Michele Bachmann on Capitol Hill on Thursday.

Should the G.O.P. avoid self-destruction by containing this fringe, then the president and his party will have to confront their real problem: their identification with the titans who greased the skids for the economic meltdown from which Wall Street has recovered and the country has not. If there’s one general lesson to be gleaned from Christie’s victory over Jon Corzine in New Jersey, it’s surely that in today’s zeitgeist it’s less of a stigma to be fat than a former Goldman Sachs fat cat, even in a blue state.

Michael Bloomberg’s shocking underperformance in New York was an even more dramatic illustration of this animus. Tuesday’s exit polls found that he had a whopping 70 percent approval rating, as befits a mayor who, whatever his quirks and missteps, is widely regarded as a highly competent, nonideological executive who has run the city well. Yet only 72 percent of those who gave him a thumb’s up voted for him. Though the mayor wildly outspent and out-campaigned his bland opponent, Bill Thompson, he received only 50.6 percent of the vote.

This shortfall has been correctly attributed to Bloomberg’s self-serving, highhanded undoing of the term limits law he had once endorsed. The ferocity of the public reaction to this power grab surprised him, pollsters and the press alike. That it became a bigger deal than anyone anticipated — arguably bigger than it merited — is an indicator of how much antipathy there is toward the masters of the universe in the financial capital. Americans don’t hate rich people, but they do despise those who behave as if the rules don’t apply to them. “Michael Bloomberg is About to Buy Himself a Third Term” was the cover line on New York magazine in October. However unfairly, some voters conflated his air of entitlement with the swaggering Wall Street C.E.O.’s who cashed out before the crash and stuck the rest of us with the bill.

The Obama administration does not seem to understand that this rage, left unaddressed, could consume it. It has pushed aside the entreaties of many — including Paul Volcker, the chairman of the White House’s own Economic Recovery Advisory Board — to break up too-big-to-fail banks. Those behemoths, cushioned by the government’s bailouts, low-interest loans and guarantees, are back making bets that put the entire system at risk. Yet last Sunday, we once again heard the Treasury secretary, Timothy Geithner, on “Meet the Press” dodging questions about the banks in general and Goldman in particular with unpersuasive bromides. “We’re not going to let the system go back to the way it was,” he said.

Surely he jests. On Monday morning, a business-savvy Democratic senator, Maria Cantwell of Washington, publicly questioned Geithner’s fitness for his job, given his support of loopholes in proposed regulations of the derivatives that enabled last year’s collapse. On Tuesday, Congressional Democrats, with the White House’s consent, voted to gut the Sarbanes-Oxley Act, the post Enron-WorldCom law passed in 2002 to prevent corporate accounting tricks and fraud. Arthur Levitt, the former Securities and Exchange Commission chairman, told me on Friday it was “surreal” that Democrats were now achieving the long-held Republican goal of smashing “the golden chalice” of reform. If investors cannot have transparency, Levitt said, “the whole system is worthless.”

The system is going back to the way it was with a vengeance, against a backdrop of despair. As the unemployment rate crossed the 10 percent threshold at week’s end, we learned that bankers were helping themselves not just to bonuses as large as those at the bubble’s peak but to early allotments of H1N1 vaccine. No wonder 62 percent of those polled by Hart Associates in late September felt that “large banks” had been helped “a lot” or “a fair amount” by “government economic policies,” but only 13 percent felt the “average working person” had been. Unemployment ranked ahead of the deficit and health care as the No. 1 pocketbook issue in the survey, with 81 percent saying the Obama administration must take more action.

The tea party Republicans vanquished on Tuesday have no jobs plan. They just want to eliminate all Washington spending — a prescription that didn’t go down too well in New York’s 23rd, where the federal government has the largest payroll. The G.O.P. establishment’s one-size-fits-all panacea is tax cuts — thin gruel for those with little or no taxable income. The administration’s answer is the stimulus, whose iffy results so far, it argues, can’t be judged this early on.

Fair enough. But a year from now the public will register its verdict in any event. Meanwhile, both parties have their own delusions, not the least of which is the Republicans’ conviction that Tuesday was a referendum on what Obama has done so far. If anything, it was a judgment on just how much he has not.