Our federal budget is more in the red than a Beverly Hills divorcee's Botox bank account.
While close to a half billion dollars in defense cuts are planned over the next ten years--a figure that could double if Congress doesn't act by the end of the year--actual expenditures haven't really fallen much yet. The Treasury Department reported today that fiscal year to date military spending is $336 billion, down only 2 percent from a year ago. Procurement is down 3 percent to $66 billion.
Deeper cuts are coming and no target may be bigger than a plane which boasts it can't be much of a target in the air, the F-35 Joint Strike Fighter. This is the most expensive defense program in history, and cost overruns and delays have made it high profile in ways Lockheed Martin never intended. "It's about nine percent of their sales," says Cai von Rumohr of Cowen & Company.