Op-ed pick: Maybe the US needs another financial crisis

This column is from May, but still worth reading. At CNN Money, Allan Sloan argued that Congress has forgotten about the sequester and isn’t worried enough about the plodding economy to get anything done.

The only real changes our government has made since the onset of the financial crisis were induced by fear. The Troubled Asset Relief Program, which played a vital role in restoring confidence and stability to the financial system, was passed only because the House’s rejection of it on Sept. 28, 2008, set off a 778-point plummet in the Dow. That scared the House into reversing itself.

The only parts of the budget sequester — an exercise in economic idiocy — that have been modified are the FAA’s cutbacks that caused air-travel delays bad enough to scare politicians into action and the food inspectors who were rescued after the meat and poultry industry spoke out in support of them. The sequester, remember, was a doomsday device created to resolve the debt-ceiling crisis in 2011, on the assumption that sequestration was so stupid and damaging that people would do anything to keep it at bay. Yet here it is.

Allen Sloan will join us tomorrow to talk about what needs to be done to get the economy back on track.