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Obama's Budgetary Window-Dressing



January 27, 2010 – Comments (1) | RELATED TICKERS: BRK-B , GE , WMT

My thoughts on the White House proposal to freeze a portion of the budget.

On another note, for those who are interested in following/ commenting on my analysis on a different platform, I can now be found on Twitter.

Alex Dumortier, CFA

1 Comments – Post Your Own

#1) On January 27, 2010 at 5:28 PM, Option1307 (30.57) wrote:

Ya, another total worthless PR stunt. Too bad the masses will likely buy into it.

Here is the original for those intersted.

The savings would be small at first, perhaps $10 billion to $15 billion, one official said. But over the coming decade, savings would add up to $250 billion.

Let's do some quick napkin calcualtions:

Federal budget deficit 2009 = 1.4 Trillion (yes w/ a T)

* a decade (10 yrs.) = 14 Trillion

So with no "budget freeze" we will be down 14 Trillion in 10 years. This is in addition to our already massive federal deficit.

But with this awesomely fantastic budget freeze we will only be down 13.75 Trillion!!!! Yeah we are saving ourselves so much money (~1.8%), new cars for everyone!

What a joke...

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