More Expensive Than Expected?
Have you ever had a professional give you an estimate on a home or car repair? I always assume that the final bill will be at least 10-20% higher. Whenever the final bill is lower I am always shocked and surprised. Well it turns out the bailout’s are going to be significantly more costly than anyone was told.
What I find shocking is how this is unfolding. Normally when taxpayers are duped, it takes years for the public to find out how horribly we’ve been misled. The trick with this one is that anyone with an excellent sense of economics and a calculator can predict the numbers. Only two weeks ago the current years U.S. federal deficit was being calculated at being almost $1.5 trillion dollars. That in itself is staggering. Two weeks later the current deficit for this single year is expected to be closer to $2 trillion. Expect it to be more.
I just read somewhere that the guy who put up the National Debt Clock in Times Square was inspired by our national debt reaching $2.7 trillion in total circa 1989. We’re talking four fifths of that in a single year. That’s 12.5% of GDP. The previous record was 6% for the year 1983.
Then there’s the trend line that points to the DJIA reaching 7000. I’ll take that as good news in light of what’s been going on. That means it should really and truly turn around after that. Yes it’s painful and I’ve been bitten by the absolute drop in stock prices like everyone, but at least there’s a projected bottom. I take heart that there is a bottom projected. It also means that a good part of Wall Street Oasis readers are about right, if you consider the recent poll. Let’s just hope that’s so.
