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FY09 deficit could reach $900 b. (6.2% of GDP) depending upon how the financial rescue is scored.  Over the weekend, I took a very rough cut at where the deficit and public debt may be headed, assuming that Treasury completes $1.2 b. of financial rescue under the Emergency Economic Stabilization Act of 2008 by the end of 2009. These estimates depend crucially upon my assumption that approximately 31% of Treasuries gross debt issuance will ultimately fall upon taxpayers.  That derives from the Resolution Trust Corporation's experience during the 1990s.   According to the Government Accountability Office, the RTC purchased $402 b. of S&L assets and sold them for $240 b. a few years later.  The taxpayers paid $124.6 b. of the difference.  Until we have actual data from Treasury on reverse auctions and on capital injections, that's what I'm assuming.  CBO and OMB disagree on how to score the net present value of the EESA program.  Any final figures will depend upon those scoring decisions.  CBO's scorekeeping letter on EESA, H.R.1424, is worth reading.   I start off with CBO's latest estimates of September 9 for comparison, BUT they do note include any cost or already completed Treasury financing under EESA.
http://www.cbo.gov/ftpdocs/98xx/doc9852/hr1424Dodd.pdf
http://www.gao.gov/archive/1996/ai96123.pdf

CBO's September 9, 2008 Update  $-billion, fiscal years

				2007	2008	2009	2010
Deficit (-) Surplus				-161	-407	-438	-431
%GDP				-1.2	-2.9	-3.0	-2.8
Public Debt				5,035	5,425	5,870	6,319
%GDP				36.9	38.2	39.9	40.8
GDP				13,642	14,210	14,719	15,473

 My Very Rough Illustrative Estimate

				2007	2008	2009	2010
Deficit (-) Surplus				-161	-438	-900	-800
%GDP				-1.2	-3.1	-6.2	-5.3
Public Debt				5,035	5,809	6,800	7,700
%GDP				36.9	40.9	47.1	50.8
GDP				13,642	14,210	14,425	15,164

I assumed that Treasury would spend all $700 b. of the EESA and $200 b. of the Fannie Mae and Freddie Mac bailout plus another $300 b. for other bailouts by the end of calendar 2009 and that $400 b. of that would score as an outlay.  I reduced GDP by 2% points in FY09 and level adjusted in FY10.  I must emphasize this is only an informed guess at this point until we have more information.

$438 b. FY08 deficit expected to be announced by OMB at 2 PM tomorrow.  At 2 PM Tuesday, the Office of Management and Budget will announce the official federal deficit for Fiscal Year 2008.  Last week, the Congressional Budget Office estimated the FY08 deficit would be $438 b.  http://www.cbo.gov/ftpdocs/98xx/doc9818/10-2008-MBR.pdf