Bear Stearns gets a $30 billion bailout, but no bankruptcy reform for real people who might lose their homes

The Bush administration, Congress and the financial services industry spent the first part of this decade working on bankruptcy "reform." It was the kind of "reform" that screwed over real people. Far too many Democrats -- 73 in the House -- went along with Bush, Tom DeLay and the GOP to support the legislation. At the same all the key financial players were working to make bankruptcy harder on average Americans, the financial services industry was veering unregulated to the chaos we have today.

Ironically (or not), on the same day the Federal Reserve Chairman and others were testified before a Senate panel to justify the $30 billion taxpayer backed bailout of Bear Stearns, the Senate defeated efforts to reform the nation's bankruptcy laws:

“This really tries my patience,” he said. “At this point in time, we don’t have the appetite in the Senate to face this.”

Durbin’s amendment would allow judges to revise the terms of mortgages on primary residences. It is opposed by the banking lobby and most Republicans. Minority Leader Mitch McConnell (R-Ky.), for example, said earlier Thursday that he would have insisted on a 60-vote threshold for the amendment’s adoption. That all but doomed the bill’s chances in a Senate split 51-49.

Of course Mitch McConnell wanted to screw over real people.

Money does talk on Capitol Hill. And, despite all their huges losses, those financial services types do have money.