Who among you thinks that this could possibly have a happy ending?
Here is an article from Fox News.
“So much for the crystal ball.
In a report next week, the Obama administration will increase its 10-year budget deficit projection to roughly $9 trillion, an increase of about $2 trillion from the previous projection, an official at the Office of Management and Budget told FOX News.
The 2010-2019 cumulative deficit projection replaces the administration’s previous estimate of $7.108 trillion.
The official said the prolonged recession and the ensuing decline in federal revenue prompted a recalibration of the deficit numbers. The numbers also reflect a projection that post-recession economic growth may not be as robust as after previous recessions, the official said.
Budget projections are rarely static. As economic conditions change, so do the estimates.
The White House also plans to announce this year’s federal deficit will end up about $262 billion less than officials had predicted earlier this year — in part because the administration has provided less aid than expected to Wall Street.
The federal deficit this year will total $1.58 trillion, a senior White House official told the Associated Press late Wednesday. That’s three times more red ink than last year. The official spoke on the condition of anonymity to discuss the report before its release next Tuesday while President Obama will be on vacation in Massachusetts.
The nonpartisan Congressional Budget Office is expected to release its mid-session review the same day. It estimated in June a one-year deficit of $1.825 trillion.
The report for the budget year that ends Sept. 30 also will predict Washington to spend $3.653 trillion this year, the official said. Revenue, however, would reach only $2.074 trillion.
“Whether it’s $1.6 trillion or $1.8 trillion, it’s pretty bad,” said Robert Bixby, executive director of the bipartisan fiscal watchdog The Concord Coalition. “I hope no one tries to spin that as good news.”
The midsummer report was supposed to have been released in mid-July, but was delayed, leading to speculation the White House was delaying the bad news until Congress left on an August recess. Other administrations delayed releasing their versions of this report during their first year.
Obama’s budget had included a $250 billion placeholder for a second bailout of the nation’s troubled banks, but he did not ask Congress for it amid concerns the administration was spending too heavily. The administration also had anticipated more banks failing, but the survival of most banks saved billions for Washington.”
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