Handouts shouldn't come without extreme conditions

So, now it appears that the real estate development industry is next in line to receive a government bailout. According to today's news this hard hit industry is hoping to take a piece of a new $200 billion package that is also being offered to prop up car loans, credit cards and student loans providers.

Who's next? The landscaping industry? Maybe the taxi cab industry or office cleaners of America will lobby for some much needed funds.

Actually, on a serious note, I have no problem with our government stepping in to stop the excessive bleeding in any private sector US industry at this point. Our economy is in such tatters, if unique financing can help our companies from going under and even bring them back to a level of prosperity in the short term, well... that's just great. When companies start faring better, then employment rates will increase. This will lead to more consumer spending... which can shift us from this "Great Recession" to a more stable business world. And, that's only good.

But, this truly is unique financing. And, let's not forget it. Not since the Great Depression has our government stepped forward in so many ways to stave off bankruptcy in so many industries. And, those companies who are willing to accept these first of a kind handouts, should also be prepared (and forced) to accept the rules that go with it.

For starters, their business leaders need to understand that because the government is essentially saving their companies, the financing should never be used to support the personal compensation (i.e. bonuses) of their executives. Secondly, let's assume that some of these companies are back on their feet and actually faring well in 18 or 24 months. I believe that senior executive compensation should remain modest and bonuses should be non-existent until those investment loans are paid back to our federal government.

We're operating in strange times. Who knows... it's quite possible that some of these companies might end up being partly owned by the government for a very long time. Maybe our pure capitalistic system will actually become one that evolves into one that is quasi government owned. Kind of like many economies have always been in Europe. I'm not sure if ultimately that is good for our system. My guess is that the pure, often unbridled capitalism that has always driven our markets will once again take over once this crisis is averted. And, this will lead to growth, excess and the next crisis in 8-10 years. But, that's a topic for another day.

The point is that companies within many sectors in the corporate world are now begging to stay alive. Many will receive a bona fide hand out (or a real Christmas present) to do so. When this happens, each should be required to wear financial shackles that ensure they equally share in the pain that has trickled down to every level of our society.