President-elect Barack Obama promised to jolt the faltering U.S. economy with a costly stimulus package next year
Less than hour after U.S. President George W. Bush -- with Treasury Secretary Henry Paulson by his side-- said the U.S. economy would recover from the current financial crisis, President-elect Barack Obama presented the economic team that will help him navigate the crisis when he inherits the faltering economy in January.
SOUNDBITE: President-elect Barack Obama saying (English):
"Right now, our economy is trapped in a vicious cycle: the turmoil on Wall Street means a new round of belt-tightening for families and businesses on Main Street - and as folks produce less and consume less, that just deepens the problems in our financial markets."
Obama announced that Lawrence Summers, a former treasury secretary under President Bill Clinton, will be director of the National Economic Council and Timothy Geithner, the president of the New York Federal Reserve Bank, will become the next Treasury Secretary.
The Brookings Institution's Darrell West.
SOUNDBITE: Darrell West, senior fellow, the Brookings Institution, saying (English):
"Obama recognizes that we face an incredible financial emergency and so he's surrounding himself with people who have experience including some people who've worked on the financial rescue package-- Tim Geithner-- as well as others who've been very involved in past Administrations."
Wall Street appeared to like Obama's choices as the Dow recorded it's second straight day of big gains -- adding to Friday's rally when news of the team was leaked.
Analysts say the markets also cheered Obama's plan for another large economic stimulus plan that would be implemented almost immediately after he takes office in January.
Hugh Johnson is the chief investment officer of Johnson Illington Advisors.
SOUNDBITE: Hugh Johnson, chief investment officer of Johnson Illington Advisors, saying (English):
"It's a lot of money but nevertheless I think Wall Street is gonna accept it especially if the payoff is a recover of the beginnings of a recovery in the economy."
And underscoring the depth of the crisis, Obama warned that despite all of the immediate efforts by his economic team, the U.S. economy is likely to get worse before it gets better.
Jon Decker, Reuters.
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