1.75 trillion dollar budget deficit projected

[swtrader]

a financial mushroom cloud

http://news.yahoo.com/s/ap/obama_budget

Administration officials talking on grounds of anonymity earlier told The Associated Press that the new blueprint predicts a whopping $1.75 trillion deficit in the current budget year.

 

[Khaled187]

how much was it in previous years?

 

[swtrader]

Quote from Khaled187:

how much was it in previous years?

400 range was the worst ever, although that number was cooked, because so many costs werent included, but then again, this number may not include everything either

it looks on the face to be a 4 fold increase

 

[bond_trad3r]

http://www.gpoaccess.gov/usbudget/fy10/pdf/fy10-newera.pdf

Fiscal Year......................: 2008 2009
Debt held in gov account: 4,183 4,340
Debt held by public.........: 5,803 8,364

Debt held in gov accounts includes the Fed. 2.5 Trillion in additional debt from the public (China, banks, et al.)

If these projections are true, there will be shitloads sales across all asset classes to purchase treasuries. Market Cap of S&P 500 is 6.9 trillion. In theory some of that will have to be sold and instead invested in treasury bonds, in theory anyway.

 

[swtrader]

Quote from bond_trad3r:

http://www.gpoaccess.gov/usbudget/fy10/pdf/fy10-newera.pdf

Fiscal Year......................: 2008 2009
Debt held in gov account: 4,183 4,340
Debt held by public.........: 5,803 8,364

Debt held in gov accounts includes the Fed. 2.5 Trillion in additional debt from the public (China, banks, et al.)

If these projections are true, there will be shitloads sales across all asset classes to purchase treasuries. Market Cap of S&P 500 is 6.9 trillion. In theory some of that will have to be sold and instead invested in treasury bonds, in theory anyway.

what i have wondered, and havent seen discussed is 'what if nobody lends it?'

I think we're sitting on the edge of a credit downgrade

 

[jordanf]

Quote from Khaled187:

how much was it in previous years?

$488 billion in 2008. Note that a budget year ends Sept 30, so TARP etc count towards the 2009 budget.

No worries, though, Obama says he plans to half the deficit by the end of his term, so by 2012 it will only be $900 billion.

 

[bond_trad3r]

Also, the 1.75 trillion deficit number is bogus. I'm not sure how that number is developed yet because it's really a 2.718 trillion deficit, according to the financial statements attached at the end of the budget. That's what the national debt is projected to increase from 2008 to 2009.

Absolutely incredible! I wonder how long it takes the MSM to look beyond the headline number. Is the 1.75 trillion omitting Social Security and the wars in Iraq/Afghanistan??

 

[swtrader]

Quote from jordanf:

$488 billion in 2008. Note that a budget year ends Sept 30, so TARP etc count towards the 2009 budget.

No worries, though, Obama says he plans to half the deficit by the end of his term, so by 2012 it will only be $900 billion.

so obama's actually made the largest deficit reduction ever

whew! that's a relief

 

[bond_trad3r]

Quote from swtrader:

so obama's actually made the largest deficit reduction ever

whew! that's a relief

Congress actually controls spending. No one is innocent.

 

[swtrader]

Quote from bond_trad3r:

Congress actually controls spending. No one is innocent.

never said they were

but getting your name mentioned next to the deficit goes along with getting to ride in air force 1