More tough economic times forecast by CBO

[Elmore Furth]

Source: Reuters

By Richard Cowan and Donna Smith

WASHINGTON | Fri Aug 20, 2010 2:58pm EDT

WASHINGTON (Reuters) - The U.S. economy faces difficult times ahead with chronic unemployment and slow manufacturing hurting the pace of recovery, the head of Congress' budget agency said on Thursday.

The warning from the non-partisan Congressional Budget Office came on top of more bad U.S. economic data that heightened concerns about a return to recession, roiling markets. The gloomy outlook could also spell trouble for Democrats facing November congressional elections.

The CBO forecast the U.S. budget deficit will hit $1.342 trillion this year, down slightly from its March projection of $1.368 trillion.

The unemployment rate, currently at 9.5 percent, will not fall to around 5 percent until 2014, (CBO director) Elmendorf said. The last time the jobless rate was 5 percent was April 2008, just as the economy was entering recession. Economists generally view a 4 percent target jobless rate as a benchmark of full employment.

Read more: http://www.reuters.com/article/idUSTRE67I0U020100820

[DJ13]

1. Theres no time, we have to pass an immediate stimulus for the

....major corporations and the wealthiest most deserving people while we slash all programs that might help the lower classes in any way.

Anything else would be a waste of money.


:sarcasm:

[OhioChick]

2. " we have to pass an immediate stimulus for the major corporations"

Of course! Don't you realize it trickles down to us??

[Phlem]

4. Why does it look yellow???

all of a sudden I'm feeling stupid and dirty???!!!

-p

[Thor_MN]

6. The GOP gives gold to the rich and the rich will give us golden showers.

[JJ Walker]

3. Not looking good

anywhere I know.

[Igel]

5. We'll see.

"CBO assumes that tax reductions enacted earlier in this decade that are currently set to expire at the end of this year do so as scheduled; it also assumes that no new legislation aimed at keeping the alternative minimum tax (AMT) from affecting many more taxpayers is enacted. In addition, CBO assumes that the measures enacted in the past two years to provide fiscal stimulus to the weakened economy will expire as currently scheduled and that future annual appropriations will be kept constant in real (inflation-adjusted) terms."
http://www.cbo.gov/doc.cfm?index=11705