Tuesday, August 25, 2009

It Is Official- 19 Percent Rise In Obama Deficit Forecast

The bad news keeps coming, kind of funny how that is happening while Barack Obama is safely out of the way on vacation.

Bloomberg:

Obama Raises ’10 Deficit Outlook 19% to $1.5 Trillion

Over the next decade, the budget picture is darker, with the 10-year deficit reaching $9.05 trillion, up from $7.1 trillion forecast in May, the budget office said Aug. 19.

“Whatever their cause, the administration is very concerned about these out-year deficits, and getting those deficits under control is a top priority of the administration,” Orszag said.

‘Sustainable Path’

He said the budget blueprint Obama submits to Congress in February will “include proposals to put the nation back on a fiscally sustainable path.” He declined to give specifics.

The median estimate of 31 economists in a Bloomberg News survey completed Aug. 21 was for a fiscal year 2010 deficit of $1.3 trillion.

“The market will view this as a very consensus-oriented forecast” and there won’t be any significant reaction, Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania.

Zandi predicted Congress will pass a second “mini” stimulus bill next year of about $250 billion to aid jobless workers, state governments and tax credits to help home buyers. “The economy will be growing at an uncomfortably slow rate, not enough to bring down unemployment, and of course it’s an election year” for Congress, he said.


The White House is trying to spin it already, they are also using multiple stories to distract from this as well as the Obamacare argument going on nationally, with the EIT report and the renomination of Chairman of the Federal Reserve Ben Bernanke to another four-year term.

I guess they figure if they throw enough red meat out there, the wolves won't all go after the same piece.

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