Deficit to the moon again!!

8/21/09

It is no surprise to see this as news today:

WASHINGTON (Reuters) - The Obama administration will increase its 10-year budget deficit projection to roughly $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The 2010-2019 cumulative deficit projection replaces the administration's previous estimate of $7.108 trillion, said the official, who is familiar with the plans.

"The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year," the official said.

"Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out."

I have no comment. All I know we are going to be so so so broke very soon.

Some figure for Existing Home Sale today!!

8/21/09

Housing and foreclosure analyst Mark Hanson sends along some more reasons to be a bit skeptical when looking at today's big existing home sales leap.

Here's a few of the internals he cites:

• Existing Home Sales would have been negative over June if not for the increase in Northeast Condo sales
  
• Single Family Detached sales were DOWN 5k units m-o-m
  
• In the all-important Western region, existing sales were DOWN 10%.
  
• Last summer selling season, existing sales were up 5 months in a row going into July
  
• Foreclosure activity in July increase by 24k m-o-m - more than existing home sales

My comments: No comment! Time will tell if this is seasonal or not!!