Goldman Sachs factors in $375bn US budget deficit

Goldman Sachs is convinced the long-term US budget outlook is far worse than official projections suggest. The Congressional Budget Office (CBO) currently projects that the 10-year budget balance for fiscal 2004-2013 will be a surplus of $0.9 trillion. However Goldman Sachs' estimate is for a deficit of £4.2 trillion. Analysts Bill Dudley and Ed McKelvey say this reflects both a worse starting point than the official projections and future changes in tax and spending policy not captured in the CBO estimates. Not only is the long-term outlook bleak, Dudley and McKelvey say the ...