What is the length of the memory of a legislative body? Spencer Bachus, a Republican congressman from Alabama, has provided an answer: 25 years. By leading the House Committee on Financial Services last week in approving an increase in federal deposit insurance to $130,000 from $100,000 for individual accounts at savings and loans institutions and banks, Mr Bachus proved that many in Congress have forgotten what happened in 1980, the last time it increased deposit insurance. The effect was to let savings and loans executives off the hook for their actions. They responded like boys at a paintball party - spraying money wildly and making colourful messes of their balance sheets. Congress also whooped it up, tolerating - even supporting - their rampage. In the end, came the crash of the Federal Savings and Loan Insurance Corp (FSLIC), the government-backed agency managing the insurance. The bailout institution itself had to be bailed out - by taxpayers, at a cost of $125bn. The disruption was so great that for a few months the US economy felt positively Japanese.

The savings and loans story is an example of moral hazard, the creation of incentives for irresponsible behaviour. It matters because this season Congress has the opportunity to prevent another moral hazard crisis. This time the moral hazard involves traditional defined benefit pensions and their government-backed insurance office, the Pension Benefits Guaranty Corp.