We've been covering the dysfunctional mortgage industry for a while now -- its systemic implications , what it means for troubled borrowers looking for modifications, and the big picture in Bob Kuttner's latest magazine feature. On Wednesday, Iowa Attorney General Tom Miller , who is leading a national investigation into pernicious practices in the industry, had this to say: “ We will put people in jail . One of the main tools needs to be principal reductions, just like in the farm crisis in the 1980s. … There should be some kind of compensation system for people who have been harmed…And the foreclosure process should stop while loan modifications begin. To have a race between foreclosures and modifications to see which happens first is insane.” If anyone doubted the importance of these problems, those comments alone should focus their attention. But this is a complicated subject, with unique problems across a spectrum of stakeholders -- consumers, investors, banks, the government,...