In an interview with the NY Times, President Obama talked about the pros and cons of having the man on the street take part in the world of finance.
Well, I think that some of the democratization of finance is actually beneficial if properly regulated. So the fact that large numbers of people could participate in the equity markets in ways that they could not previously — and for much lower costs than they used to be able to participate — I think is important.
Now, the fact that we had such poor regulation means — in some of these markets, particularly around the securitized mortgages — means that the pain has been democratized as well.
He’s such a reasonable guy. It would be much easier for him to just say “AIG” and tap into some negative energy. But he knows there are more people out there who accept that there are risks and rewards in investing, and that the upside potential should be available to anybody.