President Barack Obama is asking Congress for $200 billion to fund the U.S. war efforts for the next year; can this lift up aerospace and defense exchange traded funds (ETFs) and stocks?
The request will be for $75.5 billion for the rest of the 2009 fiscal year to cover the cost of sending more troops to Afghanistan this year and additional $130 billion for 2010, reports Mike Mount for CNN Politics. Money for funding in 2010 will be included in the overall funding request.
Meanwhile, the president proposes $2 trillion cuts in spending over the coming decade to help restore a not-quite-near-balance in spending and revenue. Signaling an end to an eight-year run of rapidly escalating defense costs, the Pentagon is requesting a budget with only minimal growth in total spending, including the costs of the wars, report Mark Silva and Julia Barnes for The Swamp.
As Obama decides to withdraw troops from Iraq, the defense spending and war costs should reduce considerably. The total amount for the defense budget is $663.7 billion, up 1.5% from 2009, reports the Associated Press.
- PowerShares Aerospace and Defense (PPA): down 5.8% over three months; down 8% over one week
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.