Obama needs to act fast - but America's problems won't be solved overnight

[CHIMO]

After a seemingly endless transition period, Barack Obama has a daunting to-do list when he finally takes office tomorrow. He inherits an economy where the recession is deepening daily, the banking system is shot, the Detroit car industry is in effect bankrupt, the housing market is in the advanced state of meltdown and the budget deficit is going through the roof even before he announces an $800bn stimulus package.

He is having trouble getting his choice of treasury secretary, Tim Geithner, approved by Congress because of questions being asked about his tax affairs and the work papers for a domestic employee. Geithner's expertise as the former head of the New York branch of the Federal Reserve is needed at a time when Wall Street has lurched back into crisis mode.

Since August 2007, there has been a distinct rhythm to events: bursts of turmoil followed by weeks or months of beguiling tranquillity. Last week's fresh $20bn bail-out of Bank of America and the rumours surrounding Citigroup marked the end of the rally that followed the market mayhem of the autumn.

To make matters worse, he is expected to solve all these problems - and more - instantly. Not since Franklin Roosevelt was sworn in, in March 1933, has the in-tray been so full; it is unlikely even FDR carried Obama's crushing burden of expectations.

http://www.guardian.co.uk/world/2009/jan/19/obama-us-economy

[bemildred]

1. Sounds like Murdoch to me.

We need to act fast but slowly.