My Connroy Finance Blog

US Deficit To Top $1.58 Trillion This Year

http://www.thestar.com/business/article/686446

The White House has predicted that the US government will face mounting debt and exploding deficits over the next few years. The cumulative budget estimates for 2009-19 now stand at $9 trillion, $2 trillion more than the earlier estimates announced in May. The public debt is now expected to double by 2019 and surge to three quarters the size of the national economy. Congressional budget analysts have said that the current year’s deficit is likely to top $1.58 trillion and a mix of lower spending and increased tax revenues is essential to improve the fiscal situation. The unemployment level is expected to surge to 10% this year with a gradual decline expected next year. The US economy is now expected to contract by 2.8% and expand by 2% in 2010.

Swiss Banks Look Beyond US For New Clients

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLL48507320090821

The uncertainty surrounding the settlement between the Swiss banking giant UBS and the US authorities has made the Swiss banking industry look beyond the US for new clients. While several Swiss banks have stopped entertaining new US clients besides asking the existing ones to exit, many others are focusing on Europe and emerging markets to expand their business. Swiss authorities have recently agreed to disclose the names and details of the bank accounts of 4,450 wealth American clients of UBS as part of a settlement of an investigation into UBS’ role in helping several US citizens in evading taxes. This many believe tarnishes the country’s image of having the best banking secrecy laws in the world. Consequently many Swiss banks have made it mandatory for their US clients to show that they are complying with the tax rules in their country.