I hear lots of Ooh's and Ah's about the revised deficit outlook. This should not be new news. The Office of Management and Budget on May 7, 2009 submitted in the Budget proposal that under current policy, the cumulative 2010-2019 deficit would be $9 trillion, while proposing its own @ $7 trillion. This is well within the margin of error, witness for example the novelty item called "Placeholder for potential additional financial stabilization efforts", at $250 billion for 2009 - which they are now thinking of not using. That is, until the credit card delinquency wave forces another type of bail-out.
The point is a deficit of around $7 to $9 Trillion has to be put in the perspective of receipts. If they were $100 trillion, hey, doable. Problem is, the same OMB forecasts them at $35 trillion. Whichever way you look at it, this means a 20% plus increase in taxes - and this is excluding Health Care Reform. See page 169 of my book "Anatomy of the Meltdown - 1998-2008. The Worst Decade in Stock Investing, or Was It?"