Peter Orszag has a very good article which offers a sobering view of the future of the US economy. It is a very well written article and it also makes a good point that the size of the budget deficit depends a lot on economic growth. So we cannot just look at controlling the debt situation by spending cuts alone. Policy makers have to look at ways to grow the economy faster. Orszag was just recently the director of the Office of Management and Budget so he definitely understands all the gory details of government revenues and expenditures.
Consumer sentiment data released today took a big dive and now it is close to levels seen during the heart of the financial crisis. Consumer sentiment generally tracks gasoline prices, considering that gasoline prices have fallen over the past month it is an indication that the falling consumer sentiment is being affected by a softening economy and most likely the appalling behavior of our legislators in Washington.
On the positive side Google came in with blowout earnings and looks like Google+ is off to a great start.