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Obama Administration's Summers: Economy is worse than we thought
Despite bracing for the worst, a comprehensive look at the official hard data has provided another dose of the sobering economic reality for the young Obama administration.The economy "is worse, quite frankly, than everyone thought it was," Lawrence Summers, President Obama's chief economic advisor, said Sunday on NBC's Meet The Press.
"We've got to spend money now while we have a recession, while we've got this serious economic crisis, but as soon as the economy recovers we are going to have to find ways of getting the government's finances under some kind of control," Summers said.
Summers added that the U.S. economy faces "very difficult" months ahead, which underscores the need for U.S. Congressional approval of the Obama administration's $825-850 billion fiscal stimulus package.
Continue reading Obama Administration's Summers: Economy is worse than we thought
Memo to Obama: Pick Geithner for Treasury
The first thing a new president must do is to pick his team. Given the state of the economy, the most important selection at this point is that of Secretary of the Treasury. What criteria should President-elect Obama use to pick his next Treasury Secretary? Here are three:
- Does the person have the respect of Wall Street?
- Does the person know the current players and issues well?
- Does the person have the energy to run at full speed in what promises to be a 7-day a week position?
Obama is reportedly considering Timothy Geithner, president of the Federal Reserve Bank of New York, former Treasury Secretary Lawrence Summers and former Federal Reserve Chairman Paul Volcker. Based on the criteria I've listed, the right person for the job is Geithner. Summers is an academic with an abrasive personality who is not steeped in the realities of Wall Street. Volcker is reportedly close to Obama and was widely respected on Wall Street, but at 81 he lacks the energy for the job.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
