Yesterday, Senate Banking, Housing and Urban Affairs unveiled its bipartisan Foreclosure Prevention Act. While it includes some generous tax breaks and credits for home builders, who will be able to write off in 2008 and 2009 major losses going back four years, it does not contain a bankruptcy provision aimed at helping homeowners in foreclosure. The bankruptcy provision would have empowered bankruptcy judges to reduce mortgage interest and principal for struggling homeowners.

Democrats have said they will offer the bankruptcy measure as an amendment, but it probably won't pass because it is seen as a "bailout" by Republicans.

Home builders, btw, gave $10,414,568 in campaign contributions in the 2004 election cycle, 78 percent to Republicans, according to Center for Responsive Politics. They gave $9,165,700 in 2006 cycle (76 percent to Rs) and $4,940,220 so far in 2008 cycle (64 percent to Rs).

Mortgage companies are also big fans of the new bill, whose contributions total $7,814,104 in 2004 cycle, $6,887,354 in 2006, and $3,372,789 so far in 2008 cycle.

You could say these guys are partly to blame for the whole sub-prime lending crisis, since they are the ones who helped drive it. They also made tons of profits in the process - obviously why they kept lending and building even in the face of obvious market distortions.

I wonder if they have learned their lesson? I am sure the countless families that wanted to own a home certainly have learned their lesson because Congress won't bail them out now. Democracy in action.