UPDATE:  It is astounding that Washington still does not "get it." Watching the Presidential Debate--be honest now--would you hve known that 12 hours earlier we suffered the LARGEST BANK FAILURE in the history of the United States?

Both parties have to fight the natural instinct to lay blame and showboat for the future.

I reiterate my earlier Hubs: a "bailout" or "workout" without a powerful "Preamble" sort of "bill of rights" for the little guys--with fines and jail for violators who lure unsophisticated investors and borrowers into the abyss, is useless.

Finally, for fans who think I am in Fantasyland:  I opposed most of the RTC S&L bailout because many "victims" were selfish, greedy, and reckless people who grabbed "Silver Certificates" and other NON-FDIC CORPORATE JUNK BONDS OF S AND L'S WHICH WERE NOT INSURED CERTIFICATES OF DEPOSIT, SO THEY COULD GET 12% ANNUAL YIELD WHEN REAL CD'S PAID 7.5%

This is not the current case. Millions of very hard working families who had saved for down payments were told they "qualified" for more house than they could afford at a time when even $100 or $200 per month tips the budget towards bankruptcy. There should be a "Counrywide" wing in every Federal Prison---ms

IN RESPONSE TO MY 28-YEAR-OLD DAUGHTER'S INQUIRY...FYI SHE NEVER STOLE A FREIGHT TRAIN AND PAYS HER BILLS....

BEFORE A BAIL OUT IS APPROVED, IN ANSWER TO YOUR INQUIRY: Ahead of the entire $700B bailout the preamble needs to be a 2008 CONSUMER INVESTMENT PROTECTION ACT

itemizing responsibilities and mandatory prison terms and fines for those who originate, approve, issue, resell, package, and serve as paying agents for mortgages which under usual and customary perameters would be unethical or illegal I could spell those out TERMS IN DETAIL...but suffice it to say that if you do not prove with the past two years' tax returns that the monthly mortgage payment is LESS THAN 30 PER CENT of your average monthly gross income, you cannot be approved. Mortgages will no longer be Baskin Robbins. They will be two flavors: 30 year fixed and 15 year fixed. If at any, repeat ANY level of the origination-to-closing-to paying agent process people have assisted in violating the rules, FIRST OFFENSE is a $250,000 fine and up to 10 years in prison. Second offense $500,000 fine and up to 15 years in prison with no possibility of parole for the first five years. See Spot? See Spot Run? See how fast you get compliance? Good dog. Sit. Sit....

enforcement of short selling rules...

With required time-stamped proof of stock loan provisions, Hello? Operator? Hello? Enforce the rules that have been there for 40 years.

reinstitution of Glass-Steagall Act of 1933 forcing all commercial banks...including the new ones like Morgan Stanley and Goldman Sachs, by April 15, 2010 to complete disgorge and end any common ownership of any retail brokerage firm, insurance company, or investment advisory firm....this gives them what they inadvertently asked for....FDIC status, but now limited to retail and commercial banking, mortgages and loans, merger and acquisition financing, and fiduciary trust functions. Sorry, they are out of the brokerage, trading, hedge fund, investment research and advisory business, and insurance companies. Citigroup--sorry, find a buyer fast for Travelers Insurance and Smith Barney. B of A., you lose: get rid of Merrill Lynch. I'll stop here...

....if Barney, Hank, or W call me I'll fill them in.