What can we expect from the economy for the rest of this year?
Andover, Massachusetts July 26th 2010 – As most Americans already know, the US economy has hit some major bumps over the past 2 years which have greatly affected the overall financial health of the country. The White House today released new estimates for the coming year on where our economy is currently and where it is heading. While some of the news is positive, the overall message coming out of Washington at the moment is that “We are trying, but get ready for a long and painful recovery.”
The newest estimate has our national budget deficit for the coming year at 1.47 trillion dollars meaning the US government is going to be borrowing 41 cents for every dollar they spend. The White House has blamed continued slumping tax revenues for the record deficit and there is no indication this will be improving anytime soon. The unemployment rate is at 9.5% currently and the new estimate has the rate staying above 9% for the remainder of the year. Obviously this is way above the historical average rate of between 5% and 6% and the President knows that his reelection campaign will face some serious opposition if he can not implement a plan to get people back to work.
The report released also outlined some of the main obstacles the USA will be facing in trying to shake off this recession and return to pre recession growth levels and prosperity. Banks continue to be reluctant when it comes to lending money to small businesses, the housing market continues to be a mess, and the continued worries about the euro currency will cause continued problems for economic growth. Although all of these issues remain very much a problem, the important thing to take from it is that the country has clearly weathered the worst of it. Unemployment has dropped from the high above 10%, the budget deficit for next year is projected to be less than this year, and the Fed continued to implement new policies that encourage lending. Will these positive steps be enough to overcome the increased uncertainty regarding new legislation as well as the continued pessimism among consumers or is the country entering a prolonged period of slow growth, high unemployment, and weak consumer confidence? Only time will tell. What do you think readers? Are you already seeing an improvement in your lives or are you still preparing for a financial Armageddon?
Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.
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Original Article:
http://news.yahoo.com/s/ap/20100723/ap_on_bi_ge/us_budget_deficit
