Meaning: The quote "Second of all, I don't think Wall Street is doing what it's supposed to be doing, even after the shameful performance of the last two years. They're are not allocating capital." by Howard Dean, a prominent American politician, reflects a critical perspective on the functioning of Wall Street and its role in the allocation of capital. This statement embodies a sentiment shared by many individuals who believe that the financial sector, particularly Wall Street, has failed to fulfill its intended purpose, especially in the aftermath of significant economic downturns or crises.

Howard Dean's assertion implies that Wall Street, as a key component of the financial system, has not effectively channeled capital to productive and growth-enhancing endeavors. Instead, it suggests that the financial industry has been involved in activities or behaviors that are not conducive to the efficient allocation of resources and the promotion of sustainable economic development. This criticism extends beyond the immediate aftermath of the "shameful performance of the last two years" referenced in the quote and raises broader questions about the systemic functioning of financial markets and institutions.

The reference to the "shameful performance of the last two years" alludes to a specific period of underperformance or misconduct within the financial industry. While the quote does not provide detailed context, it likely pertains to the aftermath of the 2008 global financial crisis, during which Wall Street firms and financial institutions were implicated in risky and speculative practices that contributed to the collapse of financial markets and had far-reaching implications for the global economy. This context underscores the significance of Dean's critique, as it reflects a broader societal disillusionment with the conduct and impact of Wall Street on the economy and society at large.

Furthermore, the phrase "They're are not allocating capital" highlights the core function of financial markets and institutions in facilitating the flow of capital from savers and investors to businesses, governments, and individuals in need of funds for various purposes. Capital allocation is fundamental to the efficient functioning of an economy, as it directs financial resources toward productive investments, innovation, and entrepreneurship, ultimately driving economic growth and prosperity. Dean's assertion that Wall Street is failing in this essential role suggests a fundamental breakdown in the financial system's ability to fulfill its societal purpose.

From a broader perspective, Howard Dean's quote encapsulates a recurring theme in public discourse regarding the role and responsibilities of the financial sector in contemporary society. It reflects concerns about the concentration of wealth and power in the hands of financial institutions, as well as the potential misalignment of their incentives with the broader interests of society. The quote resonates with debates about financial regulation, corporate governance, and the social impact of financial activities, all of which have become increasingly prominent in the wake of financial crises and widening economic inequality.

In conclusion, Howard Dean's quote offers a critical perspective on the performance and conduct of Wall Street, highlighting concerns about its failure to effectively allocate capital and fulfill its societal role. This critique is situated within the broader context of financial crises, regulatory debates, and societal expectations regarding the financial industry's impact on the economy and society. As such, the quote encapsulates a broader sentiment regarding the need for responsible and effective financial intermediation to support sustainable economic development and societal well-being.