Article Image
News Link • Obama Administration

Bank Of America Sees Material Deterioration In Budget Deficit Estimates

Greece is just a pleasant distraction compared to what would happen if the US can't roll $700 billion in short-term debt each month. The Treasury’s quarterly refunding announcement next week and the looming threat of a sovereign debt crisis in Europe provides us an opportunity to revisit our deficit projections. After all the US budgetary situation for FY 20091 was nothing to brag about: the federal deficit hit a peace-time peak of $1.42 trillion — nearly 10% of the nation’s output. After sifting through the administration’s most recent budgetary initiatives and current Congressional plans, the FY 2010 deficit now looks to be over $1.34 trillion — somewhat above our earlier estimate of $1.25 trillion (Chart 4). That translates into a budgetary shortfall equal to 9% of GDP.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: