BEST OBAMANOMICS POST OF THE QUARTER: DINOCRAT

DINOCRAT:

How about a stress test for the federal budget?

The government did a stress test of capital adequacy of the banks and determined that the largest institutions need about $75 billion in additional capital. The stress test assumes potentially tough economic conditions in the US going forward. NYT:

Under the worst-case assumptions — an unemployment rate of 10.3 percent next year, an economic contraction of 3.3 percent this year and a 22 percent further decline in housing prices — the losses by the 19 banks could total $600 billion this year and next, or 9.1 percent of the banks’ total loans, regulators concluded. That rate of loss would be higher than any other since 1921. But while the adverse situation was supposed to be unlikely, it is not that much worse than what has happened so far. Unemployment hit 8.5 percent in April and could top 9 percent as early as Friday, when the Labor Department releases its employment report for May.

The Obama administration has introduced a gargantuan three and a half trillion dollar budget (with a little comic relief of late — teeny tiny budget reductions for the adoring media to praise).

The budget plan produces outrageous deficits, that even taxing the rich at 100% will not cure.

The bill for this orgy of spending will be passed on to a bunch of chumps, whom we in America call “children.” The Obama administration is robbing from the future to pay for the present on a scale unprecedented in US history.

Perhaps the greatest outrage is the overt dishonesty of it all — these huge budget deficits are based on an impossibly rosy scenario of tremendous growth in the economy...

RTWT. AND USE THE LINKS!