gm and aig

The treasury has made a huge mistake in rescuing GM as well as AIG and has made matters worse.

They are now trying to sell off both and hoping to get some of the money back.

It would have been better to let both companies fall on their own and if they had done so matters would be better now.

Instead the situation is now worse than it ever was and no end in sight.

The treasury thought they could print massive amount of money and then withdraw it slowly but they have found that it is impossible.

What will happen is that inflation will be the result of all this overprinting of money.

The reason the inflation has not picked up speed yet is number one the massive overpricing of houses that is coming down and also that foreigners have been willing to buy US bonds.

Both will come to an end soon and the amount of money in circulation will begin to really make ordinary things become very expensive.

U.S. President Barack Obama and his administration weakened the country=92s economy by seeking to foster growth instead of paying down the federal debt, said Nassim Nicholas Taleb, author of =93The Black Swan.=94

=93Obama did exactly the opposite of what should have been done,=94 Taleb said yesterday in Montreal in a speech as part of Canada=92s Salon Speakers series. =93He surrounded himself with people who exacerbated the problem. You have a person who has cancer and instead of removing the cancer, you give him tranquilizers. When you give tranquilizers to a cancer patient, they feel better but the cancer gets worse.=94

Today, Taleb said, =93total debt is higher than it was in 2008 and unemployment is worse.=94

Obama this month proposed a package of $180 billion in business tax breaks and infrastructure outlays to boost spending and job growth. That would come on top of the $814 billion stimulus measure enacted last year. The U.S. government=92s total outstanding debt is about $13.5 trillion, according to U.S. Treasury Department figures.

Obama, 49, inherited what the National Bureau of Economic Research said this week was the deepest U.S. recession since the Great Depression. Even after the stimulus measure and other government actions, the U.S. unemployment rate is 9.6 percent.