Over the last few days, a handful of eye-roll-inducing, easily-ignored activists calling themselves Occupy Wall Street grew into a large, multi-state movementthat demands our attention.  Thousands of protesters now gather in New York, Boston, Chicago, LA and other cities, protesting… well, something.  The inchoate mass lacks a singular focus –  activists carry signs ranging from “Pepper Spray Goldman $achs” ($ instead of S – clever!) to tried-and-true standbys like “Free Mumia” and “Meat is Murder.” 

Still, these protests are united by an undercurrent of anger at an economic system that has, in their eyes, rewarded the investment banks while the rest of us suffer through a recession that they caused.  It’s good old fashioned populism – the slightly late liberal counterpart to the Tea Party Movement. 

Both Occupy Wall Street and the Tea Party are reactions to the 2008 financial crisis and its long, ugly aftermath.  We shouldn’t expect Occupy Wall Street to fade away anytime soon, as it has the potential to become a powerful, polarizing brand on the left, just like the Tea Party has been on the right.  With unions joining the protests in solidarity, this isn’t just another excuse for kids who couldn’t score Burning Man tickets to beat on some bongos: it’s the start of a liberal movement which is seperate and distinct from Barack Obama.  As long as the economy remains in the doldrums, we can expect populist anger to remain frothy and available in every flavor. 

Noticeably and not-unexpectedly, few of the news reports I have read quote either Tea Party members or Wall Street Occupiers waxing philosophical on the latest rules and regulations emerging from the Dodd-Frank act.  While corporations, the SEC, the CFTC and others discuss how to implement what many call the most sweeping financial reforms since 1934, a large and diverse public does not seem satisfied.  Can we expect further legislation in the build up to the 2012 elections? 

In “This Time is Different” Carmen Reinhart and Ken Rogoff analyzed the financial crises of the last 800 years and found that they create a long period of sloth-like growth.  Normally, unemployment remains high for four to five years.  So far, they have been dead-on: good for them, bad for everyone else. 

And perhaps really bad for anyone hoping for less economic uncertainty.  Robust recovery appears to be over a year away.  A suddenly re-energized left, with elements of Ron Paul libertarianism thrown in, combined with a mobilized Tea Party could cause some havoc if they can inspire Congress to channel this incoherent anger.  More likely, however, is even more partisan gridlock, at least until November 2012.  Either way, the yawning disconnect between policy makers and the public continues to grow without signs of abating anytime soon, and that will make it even harder for businesses already mired in economic uncertainty.