Thursday, August 27, 2009

Obama Administration Released Updated Economic Projections

The Obama administration has officially released their updated economic projections (pre-release Berman Post: Obama Administration Increase Ten Year Deficit Projection by Nearly Two Trillion Dollars). It is pretty grim, but what was expected based on the leaked info.

"The White House midsession budget forecast and the non-partisan Congressional Budget Office both forecast that government revenues will be crimped by a slow recovery from the worst recession since the 1930s Great Depression, while spending on retirement and medical benefits soars.

The White House projected a cumulative $9 trillion deficit between 2010 and 2019, while the CBO pegged the total at $7.1 trillion because it assumed higher revenues as tax cuts expire.

Also related; the unemployment picture is fairly grim as well.

"Atlanta Federal Reserve Chief: Real Unemployment Rate is 16%
Update: CBO Now Projects an 2.3 Million Additional Unemployed Next Year, On Top of Already-Expected Millions
But don't expect to hear this repeated by anyone in the media again.

he real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday.

"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart.

He underscored that he was expressing his own views, which did "do not necessarily reflect those of my colleagues on the Federal Open Market Committee," the policy-setting body of the central bank.


Lockhart, who heads the Atlanta, Georgia, division of the Fed, is the first central bank official to acknowledge the depth of unemployment amid the worst US recession since the Great Depression.

Thanks to AHFF Geoff.


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