Bailout?

I haven't looked too closely at the bailout package, but if what I'm seeing and hearing in the headlines is true, it will amount to nothing more than a reward for people who have screwed up.

Here is how I would manage the bailout of lenders and finance companies caught in the subprime situation:

1. Not every company affected would get to take part in the bailout. They would have to qualify by agreeing to certain terms.

2. The first term they must agree to is no bonuses or raises for anyone making $100,000 or more, for 3 years.

3. No new high-risk loans for 5 years.

4. High-risk loans must account for no more than 25% of their available capital.

5. Annual audits reported to the federal government for 7 years.

6. Once the company qualifies, they do not automatically receive the amount needed to cover their losses. The amount they receive depends on their customers who have or are in danger of defaulting on loans.

7. The customers must qualify to participate in the program.

8. The customers qualify by a record of steady employment and consistent effort to make payments.

9. Customers must also agree to financial counseling and to living on a budget until their debt is paid.

10. When a qualified customer makes a payment, the program will match the amount of their payment.

This plan should bring some accountability to both the lenders and the borrowers, and it should stabilize the finance industry.

Will it happen this way? This plan has as much chance of happening as me performing a frontal lobotomy on myself.