AOL Money & Finance

Congress does the right thing: Cuts F-22 fighter program

More

Amid a budget process in which every dollar counts, and while Congress determines the most suitable revenue options for universal health care, legislators have weeded-out one wasteful government program: the F-22 fighter jet program.

The Senate voted 58-40 Tuesday to block expansion of the expensive and controversial new jet, CNN reported, and in the process $1.75 billion will be saved.


A matter of defense spending priorities

The jet would not strengthen national security, and would invariably take dollars away from where they're really needed: for armament and supplies for U.S. Armed Forces on the ground fighting in Afghanistan and in Iraq. President Obama said as much shortly after the vote.

"At a time when we're fighting two wars and facing a serious deficit, [expanding the F-22] would have been an inexcusable waste of money," Obama said, CNN reported. The big defense contractor losers will be manufacturer Lockheed Martin (NYSE: LMT), which Tuesday closed down $6.98 to $75.13, and engine manufacturer United Technologies (NYSE: UTX), down $1 to $53.97.

Stock Analysis: Lockheed should be able to make up for the F-22 production loss with increased production of the F-35. Still, concerning defense spending in general, there may be cuts to other Pentagon programs, particularly if the U.S. has to increase troop deployment to Afghanistan to more than 150,000 in order to defeat the Taliban.



Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA+132.7910,450.95
NASDAQ+29.972,176.01
S&P 500+14.861,106.24

Last updated: November 23, 2009: 07:46 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines