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His solution is a large financial regulatory reform effort, which advisers expect to pass Congress later this year. The question is whether the reforms, once they have been chewed and spit out by Congress and the banking lobby, will be enough. One point of contention is the proposed Consumer Financial Protection Agency, which would provide a new layer of independent regulation on financial institutions. The Chamber Of Commerce is dead-set against the plan, which was already weakened substantially in the House. As Elizabeth Warren, who runs the Congressional oversight panel for the TARP program and might be appointed to the agency if it is created, wrote to supporters this week, "The fate of the Consumer Financial Protection Agency will be the best way to follow the story moving forward because consumer products were the most abusive and because the CFPA has real muscle to stop those abuses." But at this point, the fate of the CFPA, and the larger financial reform effort, remains unclear.

The Ways Of Washington

Illustration by Raymond Weekes / Getty

One of the central planks of Obama's campaign was a pledge to move beyond the "partisanship and pettiness and immaturity that has poisoned our politics for so long." So far, however, little material has changed in the ways of Washington, which remains deeply and bitterly divided by partisanship and ideology. Obama is blunt about his frustrations in this regard. "There were those who argued that because I had spoke of a need for unity in this country that our nation was somehow entering into a period of post-partisanship," Obama said of his election, in an address to the Vermont Avenue Baptist Church on January 17. "That didn't work out so well."

In other ways, as well, Washington's worst habits remain unchanged. Lobbyists, a top target of President Obama, appear to have retained much of their power, if not increased it, over the past year. The third quarter of 2009 saw $849 million spent on federal lobbyists, about $8 million more than a year earlier. The total amount spent through the first three quarters of 2009 was $2.5 billion, according to the Center For Responsive Politics, more than all the money spent in 2005 on lobbyists. At the White House, Obama has issued orders restricting lobbyists from joining advisory committees, or revolving into government jobs. But those are merely tinkering with the margins, not changes to the central machinery of government.

Foreign Policy

Richard H. Cohen / Corbis

By one global measure, Obama's first year in office has been a resounding success. International attitudes towards the United States have been transformed. "Belief that Obama will 'do the right thing in world affairs' is now nearly universal in Western countries, where lack of confidence in President Bush had been almost as prevalent for much of his time in office," reported the Pew Global Attitudes Project last summer, as part of a poll that showed positive movement in all the countries surveyed, except for Israel. As a cherry on the top, Obama won the Nobel Peace Prize.

In terms of substantive successes, however, it has been a more trying year for Obama on the world stage. Israeli relations with Palestinians have, if anything, deteriorated, after some initial optimism. Iran remains defiant, and the international community still undecided on the way forward. Afghanistan has required not one but two strategic reviews, and the death toll of American servicemen remains painfully high. Iraq, though improved, is on the verge of a political crisis that could purge hundreds of Sunni politicians from the election ballots. There has been progress in nuclear disarmament talks with Russia, but initial deadlines for signing a new agreement have slipped. Talks last month in Copenhagen over a new global warming pact ended in broad disappointment.

Next to pushing through two different health-care reform bills and a $787 billion economic stimulus, President Obama's major legislative accomplishment of 2009 was the House passage of a climate and energy bill, which would for the first time set a price for carbon dioxide emissions. The celebration, however, was muted by the defections of 44 House Democrats, and then smothered by gridlock in the Senate. Senate Majority Leader Harry Reid says he still expects a vote on similar legislation this year, but White House aides have been privately skeptical of getting strong carbon emissions limitations through the Senate anytime soon.

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