I just listened to one of the local pols (Jackie Speier) explain that:

• They are going to limit executive compensation by making amounts over $400,000 non-deductible. Give me a break,  Jackie, do you think I’m a complete moron? These companies now have huge tax-loss carry-forwards. They aren’t going to be paying any taxes for years! They don’t care about deductibility! So, in effect, there are no limits.
• If the taxpayer is losing money five years from now they will impose a “tax on Wall Street.” Five years from now? Come on, no-one will remember or enforce that and in the meantime they will have taken the money and run.

I guess I can’t stop you screwing me, but don’t insult my intelligence while you are doing it. It is clear that the vast majority of taxpayers are opposed, local politicians’ offices are reporting mail and calls are 500 or 1,000 to 1 against this gift to the plutocrats. 

If you want to know why this handout has suddenly become an “emergency” just look at the recent collapse of the stock price of Goldman Sachs and ask yourself where Hank Paulson’s interests really lie. You can get a clue from the following:

As the group, led by Treasury Secretary Henry M. Paulson Jr., pondered the collapse of one of America’s oldest investment banks, Lehman Brothers, a more dangerous threat emerged: American International Group, the world’s largest insurer, was teetering. A.I.G. needed billions of dollars to right itself and had suddenly begged for help.

The only Wall Street chief executive participating in the meeting was Lloyd C. Blankfein of Goldman Sachs, Mr. Paulson’s former firm. Mr. Blankfein had particular reason for concern.

Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said…..

A Goldman spokesman said in an interview that the firm was never imperiled by A.I.G.’s troubles and that Mr. Blankfein participated in the Fed discussions to safeguard the entire financial system, not his firm’s own interests.”

Sure.