Federal budget deficit hits new high

The federal budget deficit for fiscal year 2008 was reported today at a record $455 billion by the Department of the Treasury.
OCT 15, 2008
The federal budget deficit for fiscal year 2008 was reported today at a record $455 billion by the Department of the Treasury. Coming in at more than double last year’s deficit, it was $65 billion over the estimate from the Treasury’s July mid-session review. The deficit accounts for 3.2% of gross domestic product and surpasses the previous record deficit of $413 billion in 2004. Stimulus tax rebates, the $700 billion financial services industry bailout, and increased spending in the Middle East are responsible for the spike, according to the Department of the Treasury. And the worst may not be over: Further government action to stabilize markets will result in lower revenues and increased spending, causing a deficit of more than $500 billion in fiscal year 2009, some analysts say. Some believe the deficit could run as high as $1 trillion, according to published reports. “We are taking aggressive actions to stabilize our financial markets and strengthen our financial institutions so they can finance economic growth,” Treasury Secretary Henry Paulson said in a statement yesterday.

Latest News

Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.
Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.

In a constant fight over control of clients, the financial advice industry has a long history of such allegations and disputes.

Powering retirement for Wall Street
Powering retirement for Wall Street

Retirement fintech Vestwell has hit profitability and $200 million in annual recurring revenue, powering savings programs for 750,000 employers and Wall Street’s biggest firms

Advisor moves: LPL welcomes back RayJay advisor trio in Texas
Advisor moves: LPL welcomes back RayJay advisor trio in Texas

Meanwhile, &Partners has drawn another Wells Fargo team based in Missouri, while an experienced South Carolina advisor has returned to Cetera from LPL.

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains