The Democratic Party's romance with Wall Street may finally be breaking up. In the past 10 days, a diverse group of Democratic senators scuttled Larry Summers's candidacy for Federal Reserve chair and New York Democrats voted for the mayoral candidate whose campaign was an attack on Michael Bloomberg's care and feeding of the super-rich at the expense of the rest of the city. Former commerce secretary (and JP Morgan Chase executive) William Daley's surprise withdrawal from the Illinois Democratic gubernatorial primary is one more indication of Wall Street's diminished sway.
Democrats have reached a watershed. After two decades in which the party has moved leftward on social issues but has largely accepted the financial sector's economic preferences - for smaller government; a greater role for markets; and reduced regulation, particularly of finance - the abject failures of the market economy are pushing the party leftward.