Investing
When $90 Billion A Month in Deficits Feels Good... Right!
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How do you celebrate a deficit of $90.53 billion for a single month? That is what the market is supposed to do for the August deficit. A report from the Treasury Department was expected to be -$95 billion per Dow Jones and expected to be the same -$95 billion by Bloomberg estimates. This also compares to a deficit of about $103.56 billion from AUG-2009.
U.S. government revenue for August came was $164 billion, up from $145.53 billion a year earlier; Spending was $254.52 billion in August, up from $249.08 billion a year earlier.
To date for fiscal-2010, Uncle Sam is about $1.26 trillion shy of a balanced budget. The most recent estimate we have seen from the White House for all of Fiscal-2010 is $1.47 trillion for 2010, above the prior year’s record deficit of $1.42 trillion.
Maybe there is a silver-lining in lower-than-expected deficits. Higher taxes seem certain at this point, yet the spending is taking place as if money grows on trees. Unfortunately, this is a drop in the bucket for the spending cuts that need to come down the road.
JON C. OGG
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