Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (28553)	5/1/2002 5:20:29 PM
From: Ditchdigger	Respond to of 29382

Pretty wild market comeback today, surprised the heck out of me..I think the naz would have dumped big, 'cept for the dow...US$ getting it's but kicked, euro at 90.50 or so..Looking very ify IMO..Did you see where the gov had to float some $1b because tax receipts ain't enough? Spend, spend, spend..problem is, it's only on defense.. I'm surprised this wasn't mentioned more by the press Gov't to Borrow $1B to Cover Expenses Email this story Printer friendly format Top Stories Agriculture Sec. to Back Farm Bill Gores to Push Book to Sellers U.S. to Help Some Get Bank Accounts Study Urges Caution on Mars Trip Fraud Up As US Spends More on Roads By JEANNINE AVERSA Associated Press Writer April 29, 2002, 4:49 PM EDT WASHINGTON -- The government, in a sharp reversal of earlier borrowing plans, said Monday that it plans to tap $1 billion from the credit markets this quarter to compensate for lower-than-expected income-tax payments and to cover the cost of this year's economic stimulus package. The Treasury Department's projected in January that it would actually retire a big chunk of the national debt -- $89 billion -- rather than increase its borrowing in the April-June quarter. "The stimulus package enacted in March accounts for one-fourth of the increase in borrowing," Treasury said. "The remaining change is due primarily to lower-than-expected 2001 tax receipts received in April and early May." It marked the first time since 1995 that the government needed to borrow in the April-June quarter. That quarter is generally flush with cash because of a flood of income tax payments flowing in Treasury's coffers. "Forecast errors of this magnitude are not surprising given total expected revenues for the year of $2 trillion," a Treasury spokeswoman said. "Cash flows are highly volatile following the April 15 tax date." The likely sources of forecast errors in tax receipts are: lower wage income; lower capital gains income; lower corporate taxes; or lower lower interest income, she said. Treasury officials said the need to borrow in the April-June reflects a short-term cash squeeze and doesn't signal a long-term move from budget surplus to deficit. Budget experts predict the United States will record a deficit for this entire fiscal year, which has not happened since 1997. The Bush administration has blamed the return of deficits on a recession that began in March 2001 and the costs of waging war in Afghanistan and battling terrorism at home. But Democrats said it was the 10-year, $1.35 trillion tax cut that Bush pushed through Congress in the spring for the budget's likely return to red ink. Disappointing tax collections mean this year's federal deficit could soar to $100 billion or beyond, private and government analysts recently estimated. G. William Hoagland, GOP staff director of the Senate Budget Committee, last week said he was projecting that the government would collect about $891 billion in individual income taxes this fiscal year. That is down from the $950 billion that congressional and White House analysts expected -- which is nearly half the $2 trillion in overall revenue the government pockets each year. For all of fiscal 2001, which ended Sept. 30, the government had a budget surplus of $127 billion, about half the previous year's record total of $237 billion. It was the first time since 1992 that the government's balance sheet did not show an improvement. Treasury also said Monday that it expects to borrow $55 billion in the July-September quarter. newsday.com