Obama administration pulls up short on estimated deficits

Another bullish day in the equity market as the Labor Number was better than expected. The government after careful massaging of data, seasonally adjusting and backing in to their birth/death rate model yielded a net loss of 36,000 jobs in February and no change to the unemployment rate!

The Cheetos eating, Red Bull drinking gamers on Wall Street were giddy and launched the Dow 122 points. Of course, the volume was at best nominal, but hey, we don’t need volume and we obviously do not need jobs to spawn a rally.

The gamers were in a state of Nirvana by the closing bell, THEN; the Congressional Budget Office chose to reward today's bullish sentiment with the following deficit projection updates. Appears at our current pace, this country will officially be bankrupt in a decade.

Don’t worry, this assures Wall Street and the Big Banks astounding compensation packages for years…then they will simply set up their boiler room in another country, manipulate that government, take hideous amounts of risk, and secure a bailout…


March 5 (Bloomberg) -- President Barack Obama’s budget proposal would generate bigger deficits than advertised each year for the next decade, with the 10-year shortfall totaling $1.2 trillion more than the administration estimated, according to the Congressional Budget Office.

The nonpartisan CBO, in an annual analysis of the White House budget proposal, said today that under Obama’s plan deficits would never shrink below 4 percent of the economy between now and 2020. The cumulative deficits would total $9.76 trillion, and debt held by the public would amount to 90 percent of the nation’s gross domestic product by 2020, the CBO said.

By 2020, the federal debt would grow to $20.3 trillion under Obama’s budget, according to CBO.

Those figures are all higher than the administration estimated last month when it said its budget would cut the deficit to as low as 3.6 percent of GDP, with total shortfalls over 10 years totaling $8.5 trillion. The publicly held debt would grow to 77 percent of GDP in 2020, under the administration’s estimate.

This year’s deficit will total $1.5 trillion, according to the CBO report.