The sight of top executives being questioned on how they walked away with hefty pay packets after enmeshing their companies in the subprime mortgage mess showed just how great the divide is between their side of the street and the rest of America.

"There seem to be two different economic realities operating in our country today," said Henry Waxman, chairman of the House Committee on Oversight and Investigations, as he opened the hearing.

That became the theme of the hearing as lawmakers—mostly Democrats—tried in vain to press for explanations of why people like Charles Prince, former head of Citigroup walked away with $10 million after the company lost billions in the volatile investments. The answers were mostly that such compensation were negotiated, routine and expected—and nobody did anything wrong.

For example, John Finnegan, chairman of the Merrill Lynch compensation committee, which gave Stanley O'Neal a $131 million goodbye, was asked why the former brokerage head was allowed to retire rather than being terminated. He responded that firing had to be for cause, or wrongful behavior, not for bad financial judgment.

Republican lawmakers rushed to shore up the embattled chief executives, with Darrell Issa of California, arguing that they were not "bad guys" who caused people to lose their homes.

But Elijah Cummings, Democrat of Maryland, drew a stark contrast, noting "I have people everyday who are losing their homes and wondering where their kids will do their homework," at the same time chief executives are making off with "golden parachutes drifting off to the golf course."

He singled out a 2006 memo by Angelo Mozilo, chief executive of Countrywide Financial, demanding that the company pay tax on his wife's corporate jet travel - a concern light years away from people worried about whether they are going to have a roof over their heads and a kitchen to cook in, Cummings pointed out.
 
Drawing the hours of grilling to a close, Waxman noted that "It seems like everyone is hurting except for you" —a sentiment that didn't seem to phase the quartet who rushed with little ceremony out the hearing room's back door to their waiting limos and drivers.

For more on the hearing go here.