CBO: this year's budget deficit to hit $1.5T

CBO: this year's budget deficit to hit $1.5T

By ANDREW TAYLOR, The Associated Press – Wed Jan 26, 2:07 pm ET

WASHINGTON – A continuing weak economy and last month's bipartisan tax cut legislation will drive the government's deficit to a record $1.5 trillion this year, a new government estimate predicts.
The eye-popping numbers mean the government will continue to borrow 40 cents for every dollar it spends.

The new Congressional Budget Office estimates will add fuel to a raging debate over cutting spending and looming legislation that's required to allow the government to borrow more money as the national debt nears the $14.3 trillion cap set by law. Republicans controlling the House say there's no way they'll raise the limit without significant cuts in spending, starting with a government funding bill that will advance next month.

http://news.yahoo.com/s/ap/20110126/ap_on_go_co/us_budget_deficit

Rating Cut by Fitch on Wealthiest U.S. State

Saturday, June 5, 2010

Rating Cut by Fitch on Wealthiest U.S. State

http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html

Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million. Not good. Fitch has reduced the states credit rating from AA+ to AA.

“The downgrade reflects the state’s reduced financial flexibility, illustrated by its reliance on sizable debt issuances during the current biennium to close operating gaps in the context of already high liabilities,” Fitch said.

Connecticut is the wealthiest state on a per capita basis with personal income of $54,397 in 2009, according to Department of Commerce.

http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html