Estimate of Budget Deficit Now Tops $1.84 Trillion

[steven johnson]

The deficit is 4 times what is considered optimal. Oh darn. Our credit card company should have told us sooner.

Published: May 12, 2009
WASHINGTON - The economic crisis is already taking a toll on the Obama administration's new budget projections, adding $90 billion to its already historically high estimates of deficits for both this fiscal year and next.
The changes, reported on Monday by the Office of Management and Budget, brings the deficit for this fiscal year, which ends Sept. 30, to $1.84 trillion from a February projection of $1.75 trillion. For fiscal 2010, the new estimate is $1.26 trillion, up from $1.17 trillion.
As measured against the size of the economy, this year's shortfall would be 12.9 percent of the overall economy, or gross domestic product. Next year's deficit would be 8.5 percent of G.D.P. Even before the latest revisions those levels are the highest in more than 60 years, since the end of World War II.
Economists generally consider that a country's annual deficits should not exceed 3 percent of economic output.

http://mobile.nytimes.com/2009/05/12/business/economy/12budget.xml

[Skink]

1. Makes you wonder what it really was previously.

[JohnWxy]

2. Welcome to the Republican Deregulation Dystopia (the market will police itself)

[notesdev]

3. They are tanking the bond market

Bernanke won't be able to play his little game with the bond market for long, until the only possible borrowing method left to the US Treasury is short term notes.

This country is bankrupt. Either we stop spending above our means right now, or soon we will be forced to whether we like it or not.

[Yupster]

4. Interest on the debt is already 1/4 of the budget

and that's with 2 % treasuries.

When interest rates go up to 6 %, what will we do?

The obvious answer seems to be a few years of high inflation, but are we going to have to go through that too?

[JohnWxy]

5. Let's have another Great Depression - we would already be there but for

unemployment insurance, FDIC, Federal REserve, and aggressive action by through the TARP.

But, we could do nothing:


http://www.geocities.com/jwalkerxy/Republican_sucker.htm

[JohnWxy]

6. Krugman fears lost decade for US due to half-steps

http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH06123_2009-05-11_07-12-56_PEK52581.htm

"We're doing half-measures that help the economy limp along without fully recovering, and we're having measures that help the banks survive without really thriving," Krugman said.

[mule_train]

7. tipping point now in rear view mirror

question is no longer 'who steered the ship into the iceberg', but rather 'where are the lifeboats'?

no nation can survive such fiscal disaster

[clarence swinney]

8. 1.84 Trillion Budget Clinton left Bush

That was the budget.

What happened?

Spend + Borrow=Kids pay tomorrow

[Yupster]

9. I remember the first trillion dollar budget

It wasn't that long ago and I thought that was an insane amount of money to spend.

Now we've tripled it.