CBO on Budget

The non-partisan CBO published their regular budget update report. Heisenberg referenced in a post this morning, so I will not recopy the salient points as Heisenberg did a great summary.

Some of these points are very important for investors and every US voter. At minimum, please read Heisenberg’s post.

Update 8-22 – IHS PMI print this morning throws a bit of cold water on CBO estimates (even as bad as they were) – Heisenberg put a good narrative around this and waxed a bit political (deservedly). Here is the key point to my update – quote:

Moore called the August numbers “a clear signal that economic growth has continued to soften in the third quarter”, and said the data “collectively point to annualized GDP growth of around 1.5%”. That is woefully short of the administration’s lofty 3% goal, and lower than CBO’s estimate which accompanied the group’s worrisome budget forecast released Wednesday.

Needless to say, a good phrase here would be: Uh Oh!

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