The Congressional Budget Office released its annual report on the ten-year budget and economic outlook. In 2009, CBO projects that the federal budget deficit will be $1.2 trillion. At 8.3 percent of GDP, that number would "shatter the previous post-World War II record high of 6.0 percent" And, that doesn't include a economic rescue package that will likely be well over $700 billion.

In FY 2008, the deficit was $455 billion (3.2 percent of GDP), so why the massive increase (and remember, this does not include an economic recovery bill)? CBO projects that in 2009:

• TARP expenditures will add over $180 billion
• Federal conservatorship of Fannie Mae and Freddie Mac will add $238 billion
• Revenues will decline by $166 billion
• Plus, the declining economy will increase eligibility rates for participation in other spending programs like nutrition assistance, unemployment insurance, and Medicaid