The Usual Suspects II

This time it's inflationary:





CBO breakdown of the 2009 budget deficit*:


1. $313b - CBO projects that worsening economic conditions will cause the deficit to increase by $313b.

2. $238b - CBO’s estimate of the cost to the government for the Fannie Mae and Freddie Mac takeovers.

3. $180b - The amount included in the deficit this year to reflect the PV of the net cost of transactions under the TARP, which was created in the fall of 2008.

4. $185b - CBO’s analysis of the budget impact of the American Recovery and Reinvestment Act of 2009. Approximately $185 billion of the $789.5 billion of spending and tax cuts would be recognized during the remainder of fiscal year 2009. The largest impact will occur in 2010 with $399 billion added to the deficit for that year.


*From Perot Charts h/t Barry Ritholtz