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CBO Deficit Figures Sky High, Bernanke Re-Hired by Obama
By Andrew Freiburghouse | Money-Rates Columnist
The Congressional Budget Office now projects that the U.S. deficit will nearly double over the next ten years. Meanwhile, President Obama re-hired Fed Chairman Ben Bernanke for another term.
What do these related news items mean to savings investors looking to secure the best CD rates and the best savings account rates?
Assumptions
The CBO report on the deficit contrasts with the Obama Administration’s estimates in a very public and potentially problematic way. The heart of this conflict lies in the assumptions each party is making.
Income taxes, for example. The CBO only uses figures derived from existing laws. Therefore, the Obama Administration’s desire to let the Bush tax cuts expire in 2011 are not part of the CBO estimates.
Bernanke and Stability
Regarding Mr. Bernanke, the idea of another term, while unpopular in some circles, is all about promoting stability in the financial system. A change to the leadership of the Federal Reserve would have been, perhaps, the change that re-injured the proverbial camel’s back.
The Bottom Line of Today’s News for Savings Investors
For deposit account interest rate watchers, today’s news was mixed. On the one hand, government profligacy and higher taxes are not good news.
On the other hand, Bernanke seems to want what savings investors need: solvent banks.
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2 Comments »
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August 25, 2009
Deborah says:
Great idea Bambam. But then again how can you or benacky be held accountable, you are only doing what the men behind the curtain are telling you to do.
I have a strange feeling that ben boy feels a bit of guilt about what he is being forced to do to the american people. Obummer on the other hand has no guilt.
Criminals will turn on each other like rabid dogs. Bernanke always looks like a deer caught in the headlights. He knows that when the heads start rolling, he will be the first to go.
The Dems have awakened the sleeping giant and bambam telling us to shut up and move aside has just made the giant mad.
2010 should be a very interesting year for everyone. This will either be the end of the Fed Reserve or the end of America as we know it. Stay tuned.
There are 300 of them and millions of “us”. -
August 26, 2009
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