Everyone, including CNN Money, knows that.

“Writing down principal is the last thing you want to do because you have to realize the loss immediately,” said Paul Leonard, a spokesman for the Housing Policy Council, a coalition of mortgage lenders.

First, any attempt to get something past Republicans and Bush was going to be a ‘hail Mary’ attempt. They allowed the Hope for Homeowners bill because they thought they could ensure it would fail — and they did. They didn’t push for use of the law. However, just pushing that bill through helped bring to light certain things about the crisis and how it existed and how it might be tackled. We came to learn, for example, that many mortgages were fractured and distributed to the winds. We also learned mortgage servicers were severely limited on modifying mortgages. We also learned (importantly) about Credit Default Swaps and how those who held mortgages could ‘insure’ them and then wait for total default failure to collect 100% on their investment.

Second, when Obama took office he had a lot of problems and financial regulation was going to require Congressional action. Well, it too has been extremely busy. When IT passes the legislation on this we might begin to see some real stability and sanity return to the financial world.

We need to return to investment and not insured investment where 100% coverage means you don’t have to worry about crashing the world economy ’cause you’re covered. That single issue needs to be addressed in it’s many manifestations — CDSs rank high, leveraging on top of leveraging too, bad credit ratings is closely related, naked shorting was one, but I believe has been dealt with. This is why it’s so important for Congress to really work hard to finish financial industry regulation bills for the president to sign into law.

The quote given above also shows that CEO pay structuring is ensuring that there will be many Enrons as individuals shape companies into spongie-ATMs which they can squeeze for money at a moment’s notice without worrying about the on-going strength and vitality of their company. That kind of NOW NOW NOW raider mentality has got to disappear. Destructive Capitalism where you bet on the failure of your competitor and then you do everything you can to destroy them is similar. Let’s not destroy what has taken so long to create.

When the demand for U.S. treasuries fails by mid-2010 to cover the trillion dollar bond auctions, Frontline will have to do a Meltdown sequel starring Bernanke & Geithner playing Greenspan & Paulson

That is really funny in an awful kind of way.

Of course, No Homeowner Left Behind didn’t save anyone from foreclosure. For people, this program wasn’t about this life, it was about the afterlife. A cruel joke where the consumer gets sucker punched, and Wall Street walks away with every kind of financial bailout imaginable, and some beyond imagination.

Truth or Consequences airing 175 hours a week: Absent the truth, we get the consequences intended by those who control what gets reported and how it’s interpreted.

There is Bill Moyers Journal on PBS each Friday night for one hour, but otherwise, it’s pretty much a fixed game show where Nancy Pelosi’s on trial for treason, Harry Reid can’t capitulate fast enough to lobbying interests, and Obama wants everyone to work together making the financial corporations whole on the back of the real economy.

When the demand for U.S. treasuries fails by mid-2010 to cover the trillion dollar bond auctions, Frontline will have to do a Meltdown sequel starring Bernanke & Geithner playing Greenspan & Paulson.