Outrage & AIG

David Harsanyi of the Denver Post gets it right:

Here's an idea: If you stop nationalizing banks, there will be no need to engage in phony-baloney indignation over bonus payments anymore.

This cockamamie populism in Washington really hit its stride when Iowa Republican Sen. Charles Grassley suggested that AIG execs who earned bonuses should "follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide."

C'mon. If suicide were a proper penalty for piddling away taxpayer dollars, the National Mall would look just like Jonestown after refreshments.

These same senators who voted to nationalize banks with nary a pre-condition are also, apparently, stupendously talented actors. After all, most of these senators voted for a bill that contained a provision that specifically protected bonuses that were agreed upon before Feb 11. in the bank bailout legislation.

How is it that all those who cast votes on this provision — because, we imagine, no trustworthy lawmaker would vote for legislation they hadn't vigorously examined — are now threatening a "special" tax to snag AIG bonuses? Not only is it dishonest, it also means they, in a breathtaking abuse of power, believe using punitive taxation to appropriate someone's salary is a legitimate function of government.

President Barack Obama, meanwhile, has asked Treasury Secretary Timothy Geithner "to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole," claiming it was all about "fundamental values."

You know what's a super useful value? A guarantee that contracts entered into by individuals or parties are respected. Or is the state ready to throw that fundamental value out and bend to the will of the angry mob?

I don't understand why Obama is literally crying over the bonuses when he and the administration have known about them for months. Are the bonuses, 1/12 of 1% of total AIG bailout money, the only problem with this entire situation? What about the other 99.9175%?