Wall Street Seeks Clearer Deficit Signal (want Bush to address it)

[RamboLiberal]

http://www.washingtonpost.com/wp-dyn/articles/A37184-2003Aug23.html

Wall Street economists -- many of them allied with President Bush's tax-cutting agenda -- are increasingly calling for stronger signals from the White House that the rising federal budget deficit will be addressed seriously. Tax cuts totaling $1.7 trillion over the last three years have helped put the economy on the path to a strong recovery, they say. Now the deficit needs the White House's attention.

"It's already time to think beyond this year and next about how to take down long-term deficits that could become disastrous," said Allen Sinai, president of Decision Economics Inc., who has strongly supported the president's tax cuts. "It would be good for the economy for the administration to at least signal they will do something."

The Congressional Budget Office will release new budget forecasts Tuesday that will put next year's red ink near $500 billion. Sinai's own forecast put the figure even higher, as high as $535 billion. Absent any serious change in policy, private sector economists say deficits will remain in that range through the decade, then escalate sharply with the retirement of the baby-boom generation.

"I see absolutely nothing that's going to bring the deficit back to balance in the foreseeable future," said David Wyss, chief economist at Standard & Poor's.

Bush's response Friday was that Wall Street and others should put such concerns on hold until after the economic recovery begins to produce jobs.

[Democat]

1. Who cares about deficits when Republicans are in charge?

Just do like Reagan and Bush Sr. and spend as much as you want and leave the mess for the next Democrat who gets elected.

[Khephra]

3. Bush actually said the deficit would be cut in half in two years today

Unless I was having a horrible dream and imagined the whole experience. It's a little hard to tell bad dreams from reality these days.

[snippy]

8. I think Whistleass said he had a plan to cut it in half in five years.

The national debt will then be over 9 trillion dollars and interest payments will exceed defense spending.

[radfringe]

9. when you whistle out of your ass

it's all just stinky gas....

just more rhetoric being spun for the election campaign

[madrchsod]

2. well you can tell what

grade georgie got in economics...that`s the dumbist economic reasoning i`ve ever heard. the economic recovery? start looking at prices of things..same price- smaller size -bankruptcy all time high and unemployment ,who really knows the percentages, more layoffs every week.then lets add in the worst job creation in 70 yrs.give away 1.7 trillion dollars that will basically create only a few jobs...

[Saintgermane]

4. Interesting....

...that Wall Street is showing signs of nervousness. However much they be for an individual tax cut, these guys are proffesional economists, and run economic and monetary projectios for a living.

I wonder what unspoken trend is giving them pause?

[fabius]

5. Bush not the only one that's "economically challenged"

quote '"It's already time to think beyond this year and next about how to take down long-term deficits that could become disastrous," said Allen Sinai, president of Decision Economics Inc., who has strongly supported the president's tax cuts.'

WTF???? :wtf: strongly supported the tax cuts and now wants to know what he's going to do about the deficit? Another tax cut should do the trick right?

Who gave this guy his job? Can't even blame Jeb and Katherine Harris for this one.

Actually I think it's time for the WSJ to get back on the "tax the poor" meme. Probably the plan all along.

[diplomats]

25. Allen Sinai must've been kidnapped by aliens

when Clinton was president he never came across as a supply sider. BTW, do we know the economy is rebounding? It could be but the data seem far from certain at this point. Also, when Clinton was president huge tax revenues produced by the economy were a major reason a record deficit became a record surplus. They must not be counting on that happening this time.

[The Zanti Regent]

6. The GOP plan is to bankrupt the Federal Government

then they will have carte blanche to terminate Social Security and Medicare, which is what they have wanted to do all along!

[grasswire]

7. say what?

"Tax cuts totaling $1.7 trillion over the last three years have helped put the economy on the path to a strong recovery, they say."

Sez who? Is it so?

[priller]

10. I'm afraid you're right

The Wall Street types are basically looking for cuts in gov't spending, and since defense is off limits (hey, that would hurt their stock price!), the cuts are all going to come in social services. Scroogonomics, here we come!

[snippy]

11. The alpha Tax Cut Monkey wants to drown it in the bathtub

According to hard-right Republicans, killing off government to make way for corporate rule is truly at the core of the so-called "conservative agenda." For example, the lead cheerleader for Bush's tax-cutting fervor is a man named Grover Norquist, well known to every politician in Washington.

"I don't want to abolish government," Norquist told National Public Radio's Mara Liasson in a May 25, 2001 Morning Edition interview. "I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub."

http://www.commondreams.org/views03/0225-10.htm

[Gin]

12. Interesting how this guy was FORr the tax cuts...he got his..."NOW" he

worries about the rest of us....phoney! Just like the administration.

[Skittles]

22. YUP: SELFISH, ARROGANT PRICKS

no doubt they're in church every Sunday thanking GOD for their good fortune. :puke:

[The Zanti Regent]

26. More on Grover Norquist

That idiot has been quoted as saying "...the happiest day of my life will be when Social Security is abolished".

I hope this son of a bitch winds up in the gutter unable to buy cat food!

[jamesinca]

13. Well this is easy enough to see thru

"Diane Swonk, chief economist at Bank One Corp., even raised a fear that has seemed remote for half a decade: inflation."

This means this was not a problem under Clinton?
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"Coupled with surging defense spending, "a trillion in deficits over two years could create explosive growth," she said, predicting an unacceptable inflation rate of 3 percent emerging by the end of 2005 ."

He is treating us to a long term problem and he is threatening our economy. This is a violation of the PATRIOT act.
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"We're pouring jet fuel on the economy," she said. "We've got overzealous policymakers willing to keep the pedal to the metal well beyond when it was necessary.""

The economist that side with Bush don't believe in his rhetoric.
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Bush is so full of it.

[aquart]

18. Which will lead to riots. Which will lead......

To a panicky government promising anything if only we will let them live and not burn their houses and children.

I mean, that's what got us that stuff in the first place.

[htuttle]

19. They keep forgetting that part...

From time to time, the ruling class needs to be reminded of that bit of history, I suppose.

[JPace]

23. I agree...

"then they will have carte blanche to terminate Social Security and Medicare, which is what they have wanted to do all along!"

They would like to shrink government until it is
small enough to choke to death. The common voter
does not understand this and keeps voting against
their own economical best interest.

Still if social security is ever eliminated there
won't be a safe place for even the rich to live.

[pfitz59]

14. Puh-leeze!

What is this BS? Buschco is a "Lootacracy", nothing more. they don't care about the futuire, they got theirs NOW! I say invade the Cayman Islands and pore over the bank records! Bush* family offshore accounts alone would end the deficit.

[Pastiche423]

15. Now that is one invasion

I could support!

Invade Cayman Island's bank accounts now!

[aquart]

20. I'd enlist for that one.

Do they take you with hammertoes?

[oneighty]

16. Head scratching

hmm, taxes are cut, money into the federal pocketbook

is reduced greatly, deficit increases due to lack of income

due to tax cuts, a few million people go back to work

at part time minimum wage jobs deficit is decreased by

taxes they cannot pay.

Makes sense to me.

180

[aquart]

17. Are they being funny?

No, don't tell me they thought those tax cuts would actually HELP the economy?

Now, THAT's funny.

[Upfront]

21. Translation

All us fat cats supported the tax cut and now we have it in hand. Now we need to cut the deficit. Lets cut some more of the liberial give away programs like SS, Medicare, aid to education, ect. These big shooters on wall street makes me sick.

[bpilgrim]

24. they want him to implment PHASE II - CUT ALL SOCIAL SERVICES asap

starting with public schools and Health Care damn freeloading communist!

bet

peace

[deneb]

27. Wall Street (almost) always sells off after a President...

...makes any comment on the economy.

The Street will go ape-shit if Shrub smirks out "Jobs & Growth" or any Neo-con pseudo-platform on the economy. At least not till the Plutocrats sell off and maybe get Uncie Greenspan to cut rates.