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Obama to Inherit Bush Legacy- Trillion $ Deficit

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Anonymous

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Bill Gross: $1 Trillion Deficit Under Obama

Tuesday, July 1, 2008 1:51 PM

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Bill Gross, the bond-fund-manager superstar, not only thinks Barack Obama will be elected president, but that the nation’s budget deficit, now nearly $500 billion, will explode to $1 trillion.


Gross, a registered Republican, wrote an open letter to Obama on the Web site of PIMCO, where Gross is co-chief investment officer. “You have inherited a mess,” Gross writes.


What do I think you should do as the new president to rectify this mess? All I know is that any solution will come with a high price tag.”


Higher taxes on the wealthy and oil companies won’t make up for the additional spending that Obama will have to approve to pull the economy out of recession, Gross argues.


“So you’re gonna do the tax thing [relief for the middle/lower class], Mr. President, and throw in some form of universal healthcare to boot that your buddy Hillary will help spearhead,” Gross writes.


“In addition, you’ll need to provide some immediate relief to homeowners in the form of FHA subsidies and low mortgage rate loans… By January, home prices will be down another 10 percent or so and our Japanese-style property deflation will be in full stride.”

Put that all together, and you get a massive budget deficit, according to Gross. “You’ll have your tax bill and your healthcare bill and your housing fix, and somehow it’ll all be paid for by wealthy hedge fund managers, oil companies or a robust economy,” he writes.


“Uh, I don’t think so, Mr. President. That’s where the ‘yes we can’ morphs into ‘no we can’t.’ Not that you won’t accomplish most of that. It’s just that you won’t be able to pay for it, and it’s better to admit it now.”


To some extent, the next president will be helpless, Gross maintains. “While the Republicans will blame you for years and label you ‘Trillion Dollar Obama’ in future campaigns, there is in fact not much that you or another president can do,” he writes.


“You’ve inherited an asset-based economy whose well has been pumped nearly dry with lower and lower interest rates and lender of last resort liquidity provisions that have managed to support Ponzi-style prosperity in recent years.”


As the economy needs $500 billion of stimulus, and the budget deficit already totals almost $500 billion, that leaves a deficit of $1 trillion, probably by 2011, Gross says.


To be sure, that still would leave us in better shape than Japan in the 1990s, he points out. The $1 trillion deficit would amount to about 6 percent of GDP, which pales next to the 10 percent figure in Japan in 1998.


But the result won’t be pretty for investors, Gross says. Once the economy recovers, inflation will rise, “as the government bonds acquired during the recession are transformed once again into risk bearing assets and high levels of investment,” he writes.


“That suggests that intermediate and long-term yields on government bonds have already bottomed and will gradually rise throughout your first, and perhaps second, administration. Your term will not go down in history as investor friendly.”




© 2008 Newsmax. All rights reserved.
 

Mike

Well-known member
Wrong. Bush's deficit was around $500 Billion. Buckwheat has pushed it to three times that in just two years with no improvement to show for it.

$1500 BILLION!!!!!!!!!!!!!!!

What happened to that Stimulus being a two year plan? The second year is up.

How's that going? :roll:

Can you say INFLATION!!!!!


WE TOLD YOU SO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 

hypocritexposer

Well-known member
I wonder what this guy thinks of obama spending double what he thought would be necessary. Mike is correct, WRONG!


As the economy needs $500 billion of stimulus, and the budget deficit already totals almost $500 billion, that leaves a deficit of $1 trillion, probably by 2011



WASHINGTON -- The U.S. budget deficit will hit US$1.43-trillion in fiscal 2010 under President Barack Obama’s budget plan, higher than the previous forecast of US$1.379-trillion, the Congressional Budget Office said Tuesday.

Read more: http://www.financialpost.com/news-sectors/story.html?id=1701909#ixzz1BXm3Uxsx
 

hypocritexposer

Well-known member
Mike said:
More than double. Almost triple.

triple the deficit, yes, but double what this author thought would be needed. (obama has added $1 Trillion to the deficit)

So if OT thinks so highly of this author, why was he off by 100%?
 

loomixguy

Well-known member
The article was written in 2008. The Ancient One can't even find anything recent to post, but as long as he's stirring feces, he doesn't care.
 

hopalong

Well-known member
oldtimer is famous for his way to post information that is outdated or incomplete or just plain misleading, especially when he is taking a beating in almost all the other forums that I know he frequents, :wink: :wink: :wink:


EH oldtimer????
 

Mike

Well-known member
Oldtimer made his post in a timely fashion.

I resurrected it from the archives just to show how wrong it was.
 

Tam

Well-known member
Sandhusker said:
Yes, Obama inherited a mess - but it was largely his own party, along with himself, that he inherited it from!

BINGO he didn't inhereit anything he and his Dems didn't have a big part to do with as they controlled both the House and Senate for the last two years of the Bush Administration. Blame is Obama's way to get out of taking responsiblity for a vote he cast. :x
 

Bullhauler

Well-known member
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.
 

hopalong

Well-known member
Bullhauler said:
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.


Hey bull humper have you ever decided it it is PROPERTY TAX or LAND TAX??
Have you looked into getting that 23% interst you pay down in any way shape or form?? No wonder you are in such bad condition :wink:

And as far as the above Perhaps you need to do the MATH and see for your self!!!!
Maybe that is why you have such high interest rates :D :D :D
 

hypocritexposer

Well-known member
Bullhauler said:
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.

Pleas show me my mathematical errors, thanks.
 

Steve

Well-known member
Bullhauler said:
Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.

did you notice the source?

(Gross, a registered Republican,)
© Newsmax.

it seems conservatives are often right on the money..
 

Bullhauler

Well-known member
hypocritexposer said:
Bullhauler said:
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.

Pleas show me my mathematical errors, thanks.


If you double 1 trillion you get 2 trillilon not 1.43.
 

Bullhauler

Well-known member
Steve said:
Bullhauler said:
Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.

did you notice the source?

(Gross, a registered Republican,)
© Newsmax.

it seems conservatives are often right on the money..

Well I know if a Republican says it it has to be true. I have always been registered as a Republican.
 

Bullhauler

Well-known member
hopalong said:
Bullhauler said:
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.


Hey bull humper have you ever decided it it is PROPERTY TAX or LAND TAX??
Have you looked into getting that 23% interst you pay down in any way shape or form?? No wonder you are in such bad condition :wink:

And as far as the above Perhaps you need to do the MATH and see for your self!!!!
Maybe that is why you have such high interest rates :D :D :D




Triple A lenders with PCA paid over twenty percent interest on operating loans in the eighties. For a town boy like yourself PCA is now a part of farm credit services of America. Today my operating loan with farm credit services is below five percent. When I need to borrow which isn't nearly as often.

Again only the ignorant out of state land-lords refer to their land as "property". I just call the taxes taxes since they are by far the biggest tax bill I pay every year.
 

hypocritexposer

Well-known member
Bullhauler said:
hypocritexposer said:
Bullhauler said:
The posts on this thread are hilarious. First you have two Oldtimer bashers that are too dumb to realize he posted it in 2008. Then you have mike and hypocrite both showing a complete lacking in both reading comprehension and math skills.

Reading the article it was interesting to see how close the author got to what actually happened in the last two and a half years.

Pleas show me my mathematical errors, thanks.


If you double 1 trillion you get 2 trillilon not 1.43.


hypocritexposer said:
Mike said:
More than double. Almost triple.

triple the deficit, yes, but double what this author thought would be needed. (obama has added $1 Trillion to the deficit)

So if OT thinks so highly of this author, why was he off by 100%?





As the economy needs $500 billion of stimulus




:lol:


Do I need to draw a picture for you BH? This guy said that $5 was needed, but obama added double that. ($10), for a total of $15. So now the deficit is triple, the original $5..


5 + ( 2 x 5 )= 3 x 5

my math is fine, but I think you're reading comprehension might be a little off.

Thanks for the reminder


:wink: :lol: :lol: :lol:
 

hopalong

Well-known member
Bull humper
Even your out of state landlords the state of SOUTH DAKOTA refer to it as property taxes, lots of references
http://www.state.sd.us/drr2/propspectax/property/faq.htm
Tiple A lenders do as well in several of the lawsuits against them for CHARGING over 20% interest not paying it!!!

Do not know where you got the idea I am a townboy but like most assumptons you make, you are so far out in left field the butterflies won't visit it you :wink: :wink: Addmitted ly I do live with in 10 miles of town so maybe that makes me a town boy in some peoples mind, that is if you qualify as a person :wink:
 
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