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The US federal deficit hit a record US$176.4B in October, according to a US Treasury Department Report Thursday. The budget imbalance outpaced economists’ expectation of US$150B. The deficit for Y 2009 fiscal year, which ended on Sept. 30, set an all-time record in USD terms of US$1.42T tripling last year’s record. Treasury Secretary Tim Geithner said last month that the skyrocketing federal deficit was inherited from the George W. Bush administration. Besides, it was a result of the government’s actions to tackle the worst economic recession since the Great Depression of 1930s. The US administration has launched a US$787B stimulus bill to boost the economy and has spent another US$700B to stabilize the financial system since President Obama took office at the beginning of the year. Experts worry the federal deficit would be unsustainable if the government did not impose fiscal discipline. “The president recognizes that we need to put the nation back on a fiscally sustainable path,” White House Budget Director Peter Orszag said. But critics argue that the government has not yet taken the problem seriously. Read more

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General Motors’ famous brand Pontiac brand may be announced to be eliminated early next week, was reported last Friday by Automotive News, citing a source familiar with the company’s plans. However, GM indicated that the closure rumor is just media’s speculation. According to the report, this announcement about Pontiac’s destiny will be made as part of an updated viability plan to the US auto task force. In the restructuring plan submitted on Feb. 17, GM had planned to keep Pontiac along with mainstream brands Buick, GMC, Chevrolet and Cadillac while Saturn, Hummer and Saab are up for sale. The US Treasury Department granted US$2B last Friday to keep GM operating. GM has been staying alive with US$13.4B in loans granted last December by the Bush administration. GM defined the report of Pontiac’s potential closure as pure “media speculation”. In a statement released Last Friday, the carmaker giant said “contrary to media speculation, General Motors has not announced any changes to its long-term viability plan or to the future status of any of its brands.” Established in 1926 and as a division of GM, Pontiac manufactures vehicle types including the sports car, sedan, crossover and sports wagon.

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