Budget Office Cautious on Economy
The head of the Congressional Budget Office says the economy isn't on the brink of a recession despite the credit crunch and housing crisis.
In fact, CBO Director Peter Orszag says the agency sees good growth in the economy despite the potholes. He says the "most likely scenario" is "continued economic growth." However, Orszag says, the housing issues and problems in the subprime mortgage markets have created a yellow level of concern.
"The risk of a recession is clearly elevated," he says. At best, he says, the housing downturn could cost the economy about 1 point of the expected 2 to 3 percent projected growth, or "not enough to tip the economy into a recession." But he says there are other elements to keep an eye on through the fall that could indicate a change in direction, including corporate spending and consumer confidence.
Tags: Congressional Budget Office | credit | economy | mortgages | recession | Peter Orszag
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Budget Office Cautious on Economy
This article sounds somewhat optimistic about the economic outlook. So why is the Congressional Budget Office recommending that Senior Citizens 65 years of age and older not receive a cost of living increase in their monthly Social Security Checks next year, nor in 2011?
Why does government give corporations and banks, who caused this miserable economic disaster, outrageous sums of money to help them out, and then cut needed assistance to senior citizens? Is it to pay for the corporate bailouts?
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