I largely agree with your thesis here, but I wanted to point out that the taxpayer has a right to be cranky when executives receive large compensation packages during bailouts.
These compensation packages are a small part of the bailout money, and it's unfortunate that the people with the most knowledge of the company's position and needs are the ones who put it there. They're not fungible and there's no good way to say, "Fix this for zero salary before we fire you and start looking to claw back some of your prior bonuses."
Most taxpayers do have little idea what's going on, but they're at least on point about the injustice of that. Preventing that involves rather substantial changes, and doing them after the last crisis and before the next one -- exactly when politicians, some voters, and business all start to get cranky about burdensome regulation. Voters who said "I told you so" have some justification and a right to be pissed.
These compensation packages are a small part of the bailout money, and it's unfortunate that the people with the most knowledge of the company's position and needs are the ones who put it there. They're not fungible and there's no good way to say, "Fix this for zero salary before we fire you and start looking to claw back some of your prior bonuses."
Most taxpayers do have little idea what's going on, but they're at least on point about the injustice of that. Preventing that involves rather substantial changes, and doing them after the last crisis and before the next one -- exactly when politicians, some voters, and business all start to get cranky about burdensome regulation. Voters who said "I told you so" have some justification and a right to be pissed.