Primary Text from......wow, Dean Baker!

t r u t h o u t | A.I.G. Bonuses: Class War in the Media

Of course, the bonus money is relatively small change in the scheme of things. The same people who think it's fine to give incompetent financial company executives multi-million dollar bonuses are busy crafting plans to hand several thousand times this amount to the same crew in their latest bailout scheme. They are saying that if this plan doesn't go through, the economy will be wrecked.

Just to be clear (because the media won't tell you), the people who designed this plan are the same people who wrecked the economy. Before anyone even thinks of supporting this plan, they should get a clear answer from Bernanke, Geithner, and the rest of the crowd to the question: "When did you stop being wrong about the economy?"

Krugman on AIG

full article here:

I’ll leave to others the question of who knew or should have known that the bonus firestorm was coming; but it’s part of a pattern. At every stage, Geithner et al have made it clear that they still have faith in the people who created the financial crisis — that they believe that all we have is a liquidity crisis that can be undone with a bit of financial engineering, that “governments do a bad job of running banks” (as opposed, presumably, to the wonderful job the private bankers have done), that financial bailouts and guarantees should come with no strings attached.

This was bad analysis, bad policy, and terrible politics. This administration, elected on the promise of change, has already managed, in an astonishingly short time, to create the impression that it’s owned by the wheeler-dealers. And that leaves it with no ability to counter crude populism.