The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past .8 trillion under new White House estimates.

Budget office figures released Monday would add billion to the 2009 red ink — increasing it to more than four times last year’s all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.

The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama’s economic stimulus bill — as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.

http://finance.yahoo.com/news/White-House-Budget-deficit-to-apf-15199183.html?.v=8

Government spending is paid for 1 of 2 ways:

1)monetizing debt ("printing" money) which leads to more inflation (=each dollar bill has less purchasing power)

2)higher taxes & new hidden taxes (carbon taxes, etc)

Well since taxes won’t even begin to cover TRILLIONS in new spending, option one is being used to the max.

Now I want you to watch this 60 minutes interview from 2007. In it, the former comptroller general (nation’s top accountant) says the United States government is bankrupt and that if it were a company if would have failed by now. He also says that at CURRENT spending levels (2007 levels) the U.S. govt. could only afford to pay social security and some medicaid by 2040.

http://www.youtube.com/watch?v=OS2fI2p9iVs&feature=related

Since then we have passed trillion in bailouts, nearly trillion dollars in "stimulus", and Obama has proposed AN ADDITIONAL .5 trillion budget.

Now if the comptroller general thought the U.S. couldn’t afford to pay for Bush’s prescription drug bill (from many years back), HOW is Obama going to pay for all this new spending???

He’ll either have to raise taxes to levels undreamed or hyperinflate the dollar attempting to monetize more debt.
boss h……………probably higher than that.

Technorati Tags: 2 ways, 50 cents, 60 minutes, bailout, barack obama, budget deficit, budget office, comptroller general, dollar bill, economic stimulus bill, federal deficit, finance yahoo, government hands, government spending, option one, prescription drug bill, purchasing power, recession, red ink, trillions

I unfortunately own some common shares of TPTX and was wondering. This is from a press release. Its not a bankruptcy so what happens to my shares? Thanks!!

http://finance.yahoo.com/q/h?s=TPTX

LA JOLLA, Calif., May 29 /PRNewswire/ — TorreyPines Therapeutics, Inc. (Nasdaq: TPTX – News) today announced that its Board of Directors has determined, after consideration of potential strategic and financing alternatives, that it is in the best interests of the Company and its stockholders to liquidate the Company’s assets and to dissolve the Company. The Company’s Board of Directors has unanimously approved a Plan of Liquidation and Dissolution of the Company (the "Plan of Dissolution") subject to stockholder approval. The Company intends to hold a special meeting of the stockholders to seek approval of the Plan of Dissolution and today it filed related proxy materials with the Securities and Exchange Commission (the "SEC").

Although the Board of Directors has approved the Plan of Dissolution, the Company continues to seek and will consider any reasonable alternative strategic or financing proposals presented to the Company. The investment firm Merriman Curhan Ford remains engaged as the Company’s financial advisor to assist in the evaluation of strategic options, including the possible sale of the Company or its AMPA/kainite receptor antagonist product candidates.

The Plan of Dissolution contemplates an orderly wind down of the Company’s business and operations. If the Company’s stockholders approve the Plan of Dissolution, the Company intends to file a certificate of dissolution, satisfy or resolve its remaining liabilities and obligations, including any contingent liabilities and costs associated with the liquidation and dissolution and make reasonable provisions for unknown or unresolved claims and liabilities, if any. Following stockholder approval of the Plan of Dissolution and the filing of the certificate of dissolution, the Company plans to delist its common stock from the Nasdaq Global Market.

Technorati Tags: ampa, certificate of dissolution, commo, common shares, contingent liabilities, finance yahoo, investment firm, nasdaq, orderly wind, prnewswire, product candidates, proxy materials, receptor antagonist, s board, securities and exchange commission, stockholder approval, therapeutics inc, today announced that, torreypines therapeutics, tptx

I was reading an article that showed a few companies that have gone or might go into bankrupt:

http://finance.yahoo.com/career-work/article/107369/7-franchises-that-went-bankrupt.html

I was just wondering..what causes a popular company to go bankrupt?

Technorati Tags: career work, finance yahoo, franchises, work article, yahoo