Heads, they win; tails, we lose.  It’s the same old tune, and it’s getting old.  Democrats have little choice but to agree to a bailout package.  Failure to act soon will accelerate the downward spiral of house prices, exacerbate the foreclosure crisis, and create a general credit squeeze that could push America into an economic Depression, the likes of which we haven’t seen since the 1930s.  

But before Democrats agree to the bailout package, they should demand sweeping conditions.   Tomorrow, George Bush will be in my central NJ district to raise money for Republican House candidates. In honor of the President’s visit, I’m participating in a press conference at Trenton, where I’ll suggest that the following conditions be tacked onto the bailout package.  These are just starting points.

1.  Any firm that accepts a bailout has become a ward of the state.  Congress should therefore cap executive compensation, including both salaried compensation and stock payouts.

2.  Bankruptcy judges should be empowered to adjust the terms of mortgages for families facing foreclosure of their primary residences. 

3.  Firms that accept the bailout should be required to unionize their clerical and support staff within twelve months.  They should be required to sign agreements binding them to use union workers for any future construction or expansion projects.  If AIG builds a new office, that office should be built by union workers.

4.  Commercial banks that accept the bailout should be required to bring their call centers back to the U.S. and to employ union workers.

5.  Commercial banks that accept the bailout should be compelled to accept tough new restrictions on credit card and banking fees, credit card interest rates, and predatory credit practices.

6.  Executives of any firm that accepts the bailout should be required to attend credit counseling classes.  It’s no more than we require of working families who file for bankruptcy when they fall on hard times or face catastrophic health care costs.

These are starting points.  I’d enjoy hearing from people about their thoughts and suggestions.  If you can get them to me today, I’ll incorporate them into tomorrow’s press statement.  And I’ll be sure to report back tomorrow with reflections on George Bush’s visit to New Jersey.