Description: It’s officially official. The Obama administration on Friday said the government ran a $1.42 trillion deficit in fiscal year 2009.

Source: CNNMoney.com

Date: 10/16/2009

Keys: Bond valuations (p249), stock market (p281)

Link:  http://money.cnn.com/2009/10/16/news/economy/treasury_deficit/index.htm?postversion=2009101617

Questions for discussion:

• How might this information influence financial managers planning for the near future? Explain your answer.
• If government bonds should squeeze out corporate borrowing, how might businesses react? Explain your answer.