Emergency money not easily found with deficit trouble

The deficit soaring after the recession

Despite signs of an economic turnaround, emergency money is still hard to find in today's economy. The federal budget deficit is at an all-time high and its enormous amount is a sign of just how hard-hitting the recession was. The Treasury Department released a total deficit of $91.85 billion for October, which is the largest ever on record. The Obama administration is projecting that by the end of 2010, the deficit will be even higher and should cap out at $1.5 trillion, which will be a 5.6% increase from last year.

The post-recession economy

The huge deficit is a result of the past year's recession. Its severity is evident when looking on government revenues and the billions of dollars rechanneled into the economy in hopes to avoid complete financial annihilation. The government has been able to support the overwhelming financial situation with lowered interest rates, and the purpose of them is to spur on economic growth. There are precautions in the mix for consumers, though. Economists are warning that the government's financing costs will start to rise quickly when true economic changes begin. The Fed will raise rates to control inflation and assure it won't spin out of control. It will be a necessary move to continue leveling off the market.

Looking back on decisions

Legislators stand firm on their decision to put stimulus money into the system. They say that the money had to be spent to keep the country from sheer financial disaster. Though the recession was tough, it could have been much worse. Lately, the administration has committed to forcing the deficit to a controllable level once the economy begins growing again and the unemployment rate starts to level itself off. … click here to read the rest of the article titled “Emergency money not easily found with deficit trouble“