I hear you about not wanting to quit, but not wanting to be part of such a work environment. Financial security matters afterall. Maybe the power reclaim comes in the not giving the guy aggregating you the pleasure of quitting? Maybe his storybook life isn't all it's cracked up to be? I recently watched a video segment on handling bullies. It went in a different direction of deflection. I'm pressed to remember the examples off the top of my head right now. Was reverse phychology at its core. Eventually it resulted in nothing to come back and attack with from the bully.
Have you been keeping your resume current in case something better comes along?