What reconciliation?

"Al Mehdi Army demonstrates in Basra From Al Qabas Kuwaiti newspaper (Arabic link):

4000 men of Sadr's militia, Al Mehdi army marched through the streets of Basra in a demonstration of power. The militia men were dressed in black shirts and khaki trousers and had their ammunition on.
The American, British and Israeli flags were painted along the road where the demonstration took place for the militia to step on them. This happened despite that some of Sadr followers joined the elections and actually won some seats under the banner of the "Unified Coalition list". The Iraqi and multinational forces did not respond in any way to that demo.

Why is this happening and how should we react to it?
Free Iraqi

Ali offers his opinions on Iraqi reconciliation, and ask the important question, Reconcile what? read for yourself his words