Remember the good ole days of $500 Billion deficits?

Last night I stumbled across a "VISIONARY" article from 2004 calling for the collapse of Freddie and Fanny Mae.
It also fretted about the budget deficit "approaching $500 Billion":

LINK
"oil soared over $48 per barrel. We have had long-term targets of $55 to $58 and we now appear to be on our way to those targets. We continue to hold longer term targets of over $70 and we may be there sooner than we expect."

"As the "Daily Reckoning" (September 23, 2004) noted "a scandal at Fannie Mae could be the harbinger of a bust in the mortgage markets .... Just as Enron spelled the end of the good times on Wall Street four short years ago". We echo that sentiment. Both Fannie and Freddie are upwards of 90% owned by the large institutions. Like a herd if the scandal spread and downgrades came from the rating agencies the stampede out of the stocks by the institutions would be almost uncontrollable."

"We are showing a weekly chart of Fannie and Freddie below. Both have been making what appear as broad topping patterns since 2001. Fannie appears to be now breaking down with minimum potential targets down to $35 to $38."

"The current budget deficit is approaching $500 billion annually and it could get bigger."

Now, $500,000,000,000 barely shows up on the graph:

Edited by Rogerdodger, 26 February 2009 - 05:01 PM.

CNBC just flashed statistics regarding decline in DJI, SPX, RUT etc, since the election in November, and all are down 25% since then! Obviously Wall Street is voting Nyet on the policies and agenda presented by the new administration.

Using assumptions of 5.5 to 6% GDP growth starting in 2010 (Please, pass the Xanax!!)

We would (yeah right) see $500 billion, for one year in 2011. HOWEVER, the ongoing projections -- with EXTREMELY rosy GDP growth assumptions show growing deficits to 1 trillion almost every year.

However, that is with NO increases in spending past what is in the works now (except with adjustment for HUGELY rosy inflation projections)