Should the Government interact with the private sector?

I think after the government intervened with the banks a few years ago that a lot of people are nervous about how interactive the government is getting in the private sector. I agree that the banks needed help to stay afloat to help the American people but I think they could have thought it through a little better. The number one reason why the government gets involved in how the private sector operates is to better the economy for the entire country right? Then why is it that when the banks and mortgage companies got the bail out money, all their CEO's seemed to get a 5 million dollar or more bonus? I think the government should have put better restrictions on how the money was supposed to be spent. This is the problem with the government trying to run both the country and the private sector in it.
Now a days the government has put a lot of controls in place to help the private sector. Some of these are good things, like new account reporting standards to prevent another Enron. But also there are a few that they put out there that makes the average "John Doe"tax payer jump out of their seat and scream at the TV for announcing that their tax dollars are going to a mortgage company that just six weeks ago said they would not help him and put him in foreclosure.
Should the government interact with the private sector? Yes,......I mean no......well.....maybe? It's a tricky question. You want the government to help the people so sometimes yes its necessary, but you still want your own company to have the chance to "be all it can be" without the government telling you how to run your business. After all, this is America. Unfortunately the only why I can really describe what I think of the government in the private sector is like is this analogy :
 The government is a preschool teacher and the US is the students, it only takes one stupid kid to stab himself with a pair of scissors to get them taken away from the rest of the class.
So, here's to all the kids out there running with scissors and eating glue to piss off the teacher enough to get them taken away from the rest of the class.