The Dow Jones closed down 2%, its worst fall since October, while Japan's Nikkei closed at a three-week low.
"When I see record profits at some of the very firms claiming that they cannot lend more to small business ... it is exactly this kind of irresponsibility that makes clear reform is necessary."
DARC Analysis:
The decision to force US banks to invest only its client's money is common sense in the present economic climate. However, the perceived rift between government and bank over liberal economics is a little exaggerated. Obama's policy shift only means that in a decade or so when it is no longer taboo to flaunt mass profit, government will reverse this statute, slowly but surely, when public memory is paid to fade.
For now, the emotional shift away from large bonuses will be a boost to Obama's ratings, but will have little effect on the US's economic health and a negative effect on the oligarchy.
