Compared to what Pete is forecasting for fiscal 2009, the $455 deficit 2008 deficit reported yesterday by the Treasury doesn't look that bad even though it was slightly higher than expected.

But the fact that $455 billion looks good in comparison to Pete's $900 billion deficit estimate, the more than $1 trillion I'm estimating, or the $2 trillion some are reporting doesn't mean that it's not newsworthy.

Deficits are sometimes necessary.  In the current very tough economic environment, the much-higher-than-ever-before-dared-to-be-mentioned federal deficit isn't causing that much heartburn.

But the additional government borrowing won't go away when the environment improves.  When the dust finally clears, the huge (10 percent or more) increase in the national debt will remain and be the budget problem of the day, year, and decade.

I decribed the situation to an audience this way yesterday.

Imagine that you're all dressed up and driving to a fancy event when you see an accident ahead.  The driver of that car is on the side of the road and bleeding badly.  You call 911 but have to do something immediately because the bleeding is so bad.  So without thinking twice, you use your designer tie as a tourniquet, rip your new shirt and pants into strips for bandages, and put your suit jacket over the victim to keep him or her warm.

You do this without thinking twice about it because that's what needs to get done.  That's when the paramedics arrive, stabilize the victim, and take him or her to the hospital.

You did a definite good deed and you should feel good about it.

That's when you realize that you're standing along the side of the road naked.