'One More Bubble!'

The balance between integrity and compensation had gotten so far out of whack that it would require a saint to put doing the right thing over taking oodles of dough, so much money that it would mean you'd never have to worry about your personal finances again.

That's why I disagree with some analysts--such as the editorial-page editors of the Washington Post --who keep insisting that compensation is only a small part of the problem and that the public is foolish to be so outraged about bailed-out companies like AIG continuing to dole out bonuses.

It's true that the bonuses pale when viewed next to the total scope of the financial meltdown, but the compensation is the principal motive for the extraordinary risk-taking that started the meltdown.

The compensation also influences the policymakers and regulators whose job it is to stop the high-rollers from putting the economy in jeopardy. If some government bureaucrat sees the chance for a mammoth payday in the future, who'd be surprised if the money didn't limit acts on the people's behalf?

And there are also the campaign checks that financial industry PACs write to helpful legislators of both parties.

In short, the multi-million-dollar bonuses and all the other fat compensation packages have distorted the American system in big ways and small.