James Surowiecki has the most pragmatic assessment of the public outrage against the AIG bonuses that I've read yet, posted over at the New Yorker.

It may be true, as Andrew Ross Sorkin has argued, that not paying the bonuses would actually end up hurting taxpayers, either because we’d be setting a precedent that contracts can be easily broken or because we need to keep the A.I.G. employees in-house lest they start trading against the company. (I don’t buy either argument, but I can see the logic behind them.) But I think it’s pretty clear that even if the “this will hurt you more than me