U.S. deficit down in first half 2010

The deficit for the first half of the year is $64 billion less than last year and full-year estimates have it as much as $300 bln lower.

Since deficit spending adds to the net wealth of the private sector in the form of greater holdings of financial assets, this constitutes a drain of private sector wealth. It's one reason that I remain bearish on the stock market.

Anyone who has been reading my report, "Fiscal Trend Digest" already knew of these trends months ago. Fiscal Trend Digest is the only daily in-depth analysis of fiscal trends anywhere!

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