EU Debt Crisis - Next Debt Crisis May Start in Washington:

Obviously Sheila Bair does not believe in the often time tested Laffer Curve that higher taxes have a diminishing effect on government revenues. She takes the liberal zero sum line and proposes additional taxes as a cure.

Curiously enough, she does not single out ObamaCare as the most recent Democrat "out of control" spending program. Wouldn't repeal of ObamaCare be a good start in establishing fiscal responsibility?

Excerpt: The US needs to take urgent action to cut its debt in order to prevent the next financial crisis, which may start in Washington, Sheila Bair, chair of the Federal Deposits Insurance Corp. (FDIC) wrote in an editorial in the Washington Post.

The federal debt has doubled over the past seven years, to almost $14 trillion, and the growth is a result of both the financial crisis and the government's "unwillingness over many years to make the hard choices necessary to rein in our long-term structural deficit," Bair wrote.

"With more than 70 percent of US Treasury obligations held by private investors scheduled to mature in the next five years, an erosion of investor confidence would lead to sharp increases in government and private borrowing costs," she added.

There needs to be "a bipartisan national commitment" for an austerity package of both spending cuts and tax increases over many years in order to solve the problem, according to Bair.

"Most of the needed changes will be unpopular, and they are likely to affect every interest group in some way," she said.

Read full CNBC article here.