All Blog Posts from Econwatch

This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.

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In preparation for the eat-a-thon that is Thanksgiving, I do like to give thanks for the big stuff - health, loving mate, wonderful family, great country with wonderful troops who give so much to all of us and an amazing city that despite the high taxes, is still worth it.

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While everyone was celebrating Dow 9000 and deliberating the potential overhaul to the US health care system, I was depressed. What has happened to regulatory reform? Yesterday, the Senate Banking Committee heard testimony from FDIC Chair Sheila Bair, at left, SEC Chair Mary Schapiro and Fed Governor Daniel Tarullo on the regulation of risk.

You probably didn't hear much about it, though. As is often the case, the appetite for reform wanes as time passes and conditions improve. Additionally, with lawmakers overwhelmed by the health care debate, they can't seem to focus on another issue concurrently.

You can almost smell it–the same lamebrain members of Congress who were all too happy to castigate every participant in the crisis, don't have the energy to deal with solutions to help prevent the next crisis. That's a shame, because we need smart regulatory reform and we need it soon.

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The fine print in the stimulus bill authorizing the AIG bonuses, which was rushed through the U.S. Congress at lightning speed, has led to a renewed call for politicians to read legislation before they vote on it.

That kind of rule may seem like plain common sense, but it's surprisingly common for members of Congress to be handed a bill that's hundreds or thousands of pages long -- and have only a few hours to read it before a vote. In other words, legislators may approve complex and important measures even though they may not know what they're actually voting on.

Jim Babka, executive director of a non-profit, non-partisan group called Downsize DC, says the AIG-bonus flap has prompted more interest in a project he's been advocating called Read the Bills Act.

"When they were debating the stimulus bill, Republicans found that this was their most effective talking point," Babka said in an interview on Wednesday. "The way we've written the Read the Bills act, it would cause Congress to slow down and pass smaller bills."

The Read the Bills Act is as simple to describe as it will be difficult for Babka and his allies to enact. A draft they've prepared says that each bill must be read aloud before a quorum in the Senate and House of Representatives; that each legislator voting "aye" must file an affidavit saying they're familiar with the contents; and that laws that don't meet these requirements can be challenged in court.

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A bill that would allow struggling homeowners to get lower mortgage payments by filing for bankruptcy passed the House yesterday by a vote of 234-191. It is expected to face a rougher path towards approval in the Senate.

There was a mounting sense of urgency driving the legislation's passage. A survey by the Mortgage Bankers Association released Thursday reported that 12 percent of homeowners were in foreclosure or behind on payments. This number is likely to get worse as more Americans join the unemployment rolls. The government announced this morning that over 650,000 jobs were lost over the month of February .

The support of key Democrats was personally solicited by housing secretary Shaun Donovan, who assured wary house members that the bill was a critical component of the president's $75 billion housing initiative. A compromise was reached between moderate and liberal congressmen to prevent homeowners from seeking more favorable mortgage terms through bankruptcy unless they have first tried to reach a deal with their lenders, reports the Associated Press.

Many Republicans are opposed to the measure. They claim that it will encourage lenders to raise rates to offset losses they will suffer if more homeowners renegotiate their loan payments through the bankruptcy courts.

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