What Obama was saying in that quote was that the fact we were fighting Nazi Germany in World War II, which had similar (if even worse) racist doctrines encoded in law to those of the Jim Crow South, brought institutionalized racism into disrepute, and helped lead to court decisions and legislation that overturned it. He's absolutely right. Considering that it was normal for black people to be beaten by police, intimidated into not voting, lynched and raped with impunity, their churches firebombed and no one brought to justice, the comparison with Nazi Germany is apt. I suppose since we didn't have gas chambers and crematoria set up it wasn't quite as bad. Call it Nazi Germany's little brother, perhaps. And remember, the gas chambers and crematoria weren't in Nazi Germany, they were in occupied Poland. What was done to black people in the Jim Crow South was in no way better than what was done in Nazi Germany itself to Jews before World War II broke out.

Actually this comparison is much more appropriate than calling Obama a "socialist," or even a "Marxist," because he believes in "spreading the wealth around."