Paul Volcker is calling it right again.

In ‘light touch’ capitalism being practiced today, banks  are accustomed to using proprietary operations inside the bank to generate the bulk of their profits.  Mr. Volcker is calling for an end to those practices in this article.

It should be obvious that banking and finance should play a supporting role to economic activity.  It doesn’t when most of Finance’s profits come from inside the institution.  This inward view turns their own retail customers into carrion.  Retail investors don’t generate very attractive returns compared to proprietary operations.

It should be equally obvious that the Obama Administration’s deep and broad ties to the Financial elite make Volcker’s comments stir up counter-arguments of  ‘economic populism’ and other excuses to keep things exactly the way they are.

Still, Volcker’s position on this issue are valid and worthy of careful consideration.   Some ivy-league blogger should get on this story so it gets some play in to a point where Mr. Summers *has* to cede most of his influence to Mr. Volcker’s positions.