DJIA may fall: American Express (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) lost value due to budget deficit in 2011

U.S. increased the budget deficit forecast for 2011

In brief: The U.S. banking sector lost foothold after the increase in the budget deficit forecast. The Dow Jones Industrial Average started falling even faster.

The Dow Jones Industrial Average will be the next to fall after American Express (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM). The fact is the U.S. raised the forecast for budget deficit in 2011, according to the U.S. Congressional Budget Office.

The CBO increased the forecast for federal budget deficit in the fiscal year of 2011 from $ 996 billion to $ 1.066 trillion. At the same time it reported that the budget deficit in the fiscal year of 2010 closing September 31, amounts to 9,1% of GDP, or $ 1.342 trillion. This figure is below the previous forecast made in March, which stated a budget deficit of $ 1.368 trillion., or 9.4% of GDP. The unemployment rate in fiscal 2010 will be 9,5%. By 2015 the U.S. budget deficit should fall to $ 507 billion. In March it will fall to $ 472 billion, the Budget Office expects.

Anrey Torbinski
2010-08-19 17:50, Economics.

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