Obama Uses Budget to Set Election-Year Priorities - NYTimes.com

Obama Uses Budget to Set Election-Year Priorities - NYTimes.com:

Obama has come out with his budget for FY2013. (Note that the US gov does not use the calendar year.)

This budget is aiming for less than $1T deficit for next year and getting the Federal debt down to a "sustainable?" level by 2017.

With the laps of Bush-era taxes and the tax increases, this mainly a move to stake out the budget negotiations that will ensue.

Here's where you go to get the 256 page doc. (It seems that the 300 to 400 pages in the budget have been overstated!:-)

http://www.whitehouse.gov/omb/budget

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/budget.pdf (actual doc)

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Wall Street opens higher after payrolls data - Yahoo! Finance

Wall Street opens higher after payrolls data - Yahoo! Finance:

Great JOBS report. Unemployment drops to 8.3%, and this improvement was not because people fell out of the job market. All the numbers are great.

Quite a surprise to the estimates. Small upward revision to December.

The ISM report of manufacturing sentiment was up 1% to 54.1 (with more than 50 being expansionary in nature).

=> Economists will have to revise their estimates for the 2012 GDP growth up toward 3%. =>Happy stock market!:-)

Couple other things this means.

1) More people working means more money to spend in the economy, a virtuous positive feedback loop!:-)

2) More people working boost the housing market with housing at a generational low and mortgage rates at an all time low of 3.8%.

3) More personal income means more spending and more taxes (sales and income), resulting in much higher government revenues that many were forecasting.

4) People start to feel better about their jobs and their homes, they will start to invest. And the MOUNTAINS of cash on the sidelines will start to flood the stock and commodity markets.

5) When peoples net worth in the market improves, they will feel more comfortable with all investments including expanding/starting businesses.

Growing economy is the single best possible thing that could happen to relieve the pressure on the US debt. A rising tide lifts all BOATS!

I, for one, would like to see water under my boat for a change.:-)

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