CBO estimates say fed budget deficit nearing $407B

[Perky]

THE GOP NEEDS TO BE FIRED. It really is that simple.



By THE ASSOCIATED PRESS
Published: September 9, 2008
Filed at 10:53 a.m. ET

WASHINGTON (AP) -- The federal government will run a near-record deficit of $407 billion this year, according to the latest Capitol Hill estimates.

The Congressional Budget Office released figures Tuesday that indicate the red ink will spill over into next year, when the deficit would reach a record $438 billion -- and could go even higher as the government takes over mortgage giants Fannie Mae and Freddie Mac.

The worsening deficit is largely due to continuing weakness in the economy, high energy and food prices, and the slump in the housing and financial markets, the CBO said. And the economy could still slide into a recession, according to the forecast.

''The economy is likely to experience at least several more months of very slow growth,'' the new report said. ''Whether this period will ultimately be designated a recession or not is still uncertain, but the increase in the unemployment rate and the pace of economic growth are similar to conditions during previous periods of mild recession.''

The economy will grow 1.5 percent this year in real terms and slip to just 1.1 percent growth in 2009, CBO predicts.

[moondust]

1. Has the great earmark and pork barrel spending warrior failed?

Yet again? Worse than ever? Does his big-spending party simply ignore him?