The Administration released its Mid-Session Review of the Budget this past Friday. There were few surprises:

• The FY2010 deficit was revised down to $1.47 trillion on the basis of estimating assumptions.

• The FY2011 deficit is estimated to be $1.41 trillion.

• There was no explicit accounting of the enormous cost of the taxpayer takeover of Fannie Mae and Freddie Mac – or a hint when it might end.

• The costs of Medicare and Medicaid were revised up – so much for health care reform – but the cost of the new law was buried in the details.

The Bottom Line: Red ink as far as the eye can see and a continued insistence that the deus ex machina of a budget commission will save the day.