U.S. deficit predicted to hit $407 billion

According to the Congressional Budget Office, the fiscal-2008 budget deficit projection is $407 billion, compared with fiscal 2007’s $161 billion deficit.
SEP 10, 2008
The U.S. government continues dive deeper into red ink. According to the Congressional Budget Office, the fiscal-2008 budget deficit projection is $407 billion, compared with fiscal 2007’s $161 billion deficit. The ballooning number is due to a weak economy and the costs of funding the wars in Iraq and Afghanistan. The fiscal-2009 budget year, which begins Oct. 1, is expected to be even higher, with a $439 billion shortfall predicted. Congressional Democrats reacted to the report by accusing President Bush of causing the deficit through reckless spending. “The federal debt will grow at an unsustainable rate, which means more borrowing from China, more borrowing from Japan and more borrowing from oil exporters like Saudi Arabia,” Senate Budget Committee Chairman Kent Conrad, D-N.D., said in a statement. “It couldn’t be clearer that we need a new fiscal course for the country.” In turn, Jim Nussle, director of the Office of Management and Budget, issued a statement calling President Bush’s spending plan “responsible” and accused congressional Democrats of trying to add billions in extra spending to the budget.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management