Has Obama been too tough on Wall Street?

The president is losing the support of financial titans, who complain that Obama has demonized their industry. But critics of the 1 percent aren't shedding any tears

By the end of January 2008, President Obama had raised well over $7 million from Wall Street moguls, but by January of this year he had raised just $2.4 million.
(Image credit: Pete Marovich/Getty Images)

President Obama's 2008 run was successful, in part, because of grassroots support, with millions of backers chipping in whatever they could — even as little as a $1 — to fuel his historic campaign. But Obama also raked in millions from titans on Wall Street, outraising John McCain $16 million to $9 million, says Nicholas Confessore at The New York Times Magazine. Four years later, Wall Street is pouring money into super PACs that support Mitt Romney, after Obama boosted government oversight of the financial system and called for higher taxes on the rich. Former donors are saying Obama "scapegoated" Wall Street for the recession, and "unfairly demonized" the wealthy, says Confessore. One financier reportedly suggested that Obama deliver a speech calling for an end to attacks on the rich, to try to induce the same healing effect as Obama's famous 2008 speech on race. Has Obama's Wall Street rhetoric been too harsh?

Obama has been a model of restraint: "Wall Street excess helped lead to the worst financial crisis since the Great Depression, inflicting untold economic suffering on millions and millions of Americans," says Greg Sargent at The Washington Post. Obama's response "was by any reasonable measure moderate and restrained," and yet Wall Street has "responded with an extraordinary outburst of resentment, grievance, and self-pity." There's nothing Obama can "say to make these people happy, short of declaring that rampant inequality is a good thing."

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