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Obama Tries To Hide The Bad News

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Gloomy Budget Forces White House to Face Harsh Reality

Published: Monday, 20 Jul 2009 | 1:18 PM ET

The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today's bleak landscape.

The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.

The release of the update—usually scheduled for mid-July—has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.

The administration is pressing for votes before then on its $1 trillion health care initiative, which lawmakers are arguing over how to finance.

The White House budget director, Peter Orszag, said on Sunday that the administration believes the "chances are high" of getting a health care bill by then. But new analyses showing runaway costs are jeopardizing Senate passage.

"Instead of a dream, this routine report could be a nightmare," Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. "There are some things that can't be escaped."

The administration earlier this year predicted that unemployment would peak at about 9 percent :lol: without a big stimulus package and 8 percent with one. Congress did pass a $787 billion two-year stimulus measure, yet unemployment soared to 9.5 percent in June and appears headed for double digits.

Obama's current forecast anticipates 3.2 percent growth next year, then 4 percent or higher growth from 2011 to 2013. Private forecasts are less optimistic, especially for next year.

Any downward revision in growth or revenue projections would mean that budget deficits would be far higher than the administration is now suggesting.

Setting the stage for bleaker projections, Vice President Joe Biden recently conceded, "We misread how bad the economy was" in January. Obama modified that by suggesting the White House had "incomplete" information.

The new budget update comes as the public and members of Congress are becoming increasingly anxious over Obama's economic policies. ...............continues

http://www.cnbc.com/id/32008607

The green shoots continue to go up in smoke. :rolleyes:

Edited by MOP

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"Instead of a dream, this routine report could be a nightmare," Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. "There are some things that can't be escaped.

Current conditions or just a bad dream

http://www.youtube.com/watch?v=FOK31D2xuOA

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was it at the 1969 moon project anniversary press conference today i heard one of the attendees say "the recession we just HAD..." or something like that, past tense.

propaganda snuck in everywhere

Edited by loginandtonic

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Well the Dow is up so it's not all bad news is it.

I mean the traders couldn't possible be getting it wrong the recovery is here and the numbers can only go up and the only thing we have to fear is fear itself we don't want to talk ourselves into a recession do we.

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