Friday, May 8, 2009

Add this up

May 8 (Bloomberg) -- President Barack Obama defended the $17 billion in cuts he’s making in a $3.55 trillion budget against criticism from lawmakers by saying any savings, large or small, “add up.”
Just fyi, $17B divided by $3.55T equals 0.0048, which is less than one half of one percent.

Meanwhile, the Congressional Blue Dogs, a group known for their opposition to deficit spending during Republican administrations, have fallen silent. Now it is up to the market to restore fiscal discipline.

NEW YORK (AP) — Weak demand at a Treasury bond auction touched off worries in the stock market Thursday about the government's ability to raise funds to fight the recession.

The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.

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