The CBO, the 'unbiased' pen of predictors, the corral of brainiacs that predict the future economy thereby allowing for the anticipation of tax revenues and fiscal expenditures of the National (excuse me, you likely know it as 'Federal') government, paint a rosy scenario. Economic troubles are past us. Hoorah! Huzzuh!
Wait...
This is only true based on the assumptions they make. When you dig deeper (as Tyler Durden and others listed below demonstrate) you discover that what the CBO foists upon us may be closer to the 'product' hauled out of corrals and pens with front-loading Bobcats than to the actual truth. "Unbiased" yet politically advantageous for a certain political party and its candidate seeking re-election? Hmmm...
In economic forecasting, as with meteorology (weather) forecasting, models are made based on past observations. The model 'crunches' the past data to see if the predicted result matches the actual weather experienced. Economic models also are 'vetted' in this manner. Guess what? Take predictions and the assumptions used by the CBO over the past decade on economic growth, and...dang. Not too good.
IF the CBO were bookies at the casinos in Vegas, they'd likely be 'disappeared' in the desert for being so wrong.
http://www.cbo.gov/ All the truth that's fit to print...not.
http://cnsnews.com/news/article/cbo-taxes-will-shoot-more-30-percent-over-next-2-years
http://blogs.wsj.com/economics/2012/01/31/economic-projections-and-key-numbers-from-cbo-budget-report/?mod=google_news_blog
http://www.zerohedge.com/news/latest-congressional-budget-outlook-2012-2022-released
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Share your unique economics experiences. What did you have to give up to gain that which at the moment seemed so necessary to you? Imperfect information spanked you and now diminishing marginal utility smacks you upside the head, eh?