Every year the Bush administration would project a far larger budget deficit than actually materialized, except of course this year as the economy ran off the rails. Obama is doing the same, stuffing loads of worst-case assumptions into his budget outline which bloats the deficit to an astounding $1.75 trln. The trouble Obama faces is that worst case scenarios on this environment tend to look way to rosy in hind-sight…
Megan McCardle makes the case that Obama is front-loading the bad news so he can come out looking liker a hero down the road.
