Obama Says "Help Is On The Way"

President-Elect Also Names Former Fed Chief Paul Volcker To Lead New White House Economic Panel

(CBS/AP)  President-elect Barack Obama pledged on Wednesday to have an economic plan ready for action to deal with the nation's financial crisis on his first day in office. "Help is on the way," he declared.

He also pushed back against criticism that he was recycling former Clinton administration officials as he builds his new economic team. He said his Cabinet would "combine experience with fresh thinking."

In his third news conference on the economy in as many days, Mr. Obama announced he had chosen former Federal Reserve Chairman Paul Volcker to head a new White House panel to help create jobs and bring stability to the ailing financial system.

Volcker, 81, will head the President's Economic Recovery Advisory Board. The board's top staff official will be Austan Goolsbee, a University of Chicago economist.

Volcker is no stranger to economic crises. He became Fed chairman in 1979, a time of high inflation and high unemployment. He helped tame inflation by raising interest rates, a move that helped plunge the economy into recession. He was later credited with reviving the economy by getting inflation under control. Volcker served as Fed chairman until 1987.

He returns as an adviser with the nation facing increasing unemployment, a growing federal budget deficit and a financial system in turmoil.

"He pulls no punches," Mr. Obama said of Volcker. "He seems to be fairly opinionated."

Fifty-five days before his inauguration, Mr. Obama defended his selection of former Clinton officials to help run his administration.

"The American people would be troubled if I selected a treasury secretary or a chairman of the National Economic Council at one of the most critical economic times in our history who had no experience in government whatsoever," Mr. Obama said.

"What we are going to do is combine experience with fresh thinking," he said. "But understand where the vision for change comes from. First and foremost, it comes from me. That's my job, is to provide a vision in terms of where we are going and to make sure then that my team is implementing."

As he spoke, there was unrelenting bad news on the economy's current state.

The government reported that jobless claims remained at recessionary levels, consumers had cut back on their spending by the largest amount since the 2001 terrorist attacks, orders to U.S. factories had plunged anew and home sales had fallen to the lowest level in nearly 18 years.

"I was elected with the charge of getting this economy back in shape," Mr. Obama said Wednesday. "We are going to implement starting day one when I come into office."

Mr. Obama said he will announce the remaining members of his new economic panel in the coming weeks. He already has named Congressional Budget Office Director Peter Orszag as his candidate to run the White House Office of Management and Budget and New York Federal Reserve President Tim Geithner as his treasury secretary.

Geithner was a Treasury Department official during the Clinton administration, and Lawrence Summers, who will head Obama's National Economic Council, was Clinton's treasury secretary. Other Clinton administration names include Eric Holder, who will be Obama's attorney general, and Rahm Emanuel, the president-elect's chief of staff.

Mr. Obama said he wants the new economic panel to provide outside voices for his administration.

"The walls of the echo chamber can sometimes keep out fresh voices and new ways of thinking," Mr. Obama said. "You start engaging in group-think."

Mr. Obama said his new economic panel will include people from business, labor and academia, "who will bring to bear their wisdom and expertise on the formulation, implementation and evaluation of my administration's economic recovery plan."

"I hope that everybody understands that we are going to be able to get through these difficult times, but we're just going to have to make some good choices," Mr. Obama said. "I was elected with the charge of getting this economy back in shape but also making sure that it's working on behalf of middle-class families."

His economic team largely complete, Mr. Obama is expected to introduce national security officials next week, including Hillary Rodham Clinton as his secretary of state.

Mr. Obama also may announce soon that Defense Secretary Robert Gates will remain at the Pentagon for a year. CBS News national security correspondent David Martin reports that a decision is close to keep Gates and may not be final until Mr. Obama and Gates have a face-to-face meeting.

James Jones, a former Marine Corps commandant and NATO commander, was Mr. Obama's pick to be national security adviser, reports the Associated Press.

Meanwhile, British Prime Minister Gordon Brown on Wednesday said his country will host an April 2 meeting of the Group of 20 industrialized and emerging economies to discuss the financial crisis. Brown told lawmakers in London that Mr. Obama has said he will attend the talks.

[jowand]

Surely people would agree that the public airwaves should be open to all. Allowing news and opinion from both right and left equal time makes good sense to share resources which belong to all.

Posted by macusweil at 01:00 PM : Nov 29, 2008

Straight from the DailyKos ward of the Liberal-Progressive-Democrat-Marxist, Mental Hospital

[jowand]

Change we can all believe in, a Future with Hope.
So we get:
Volcker who torpedoed the economy in the late 1980s.
Rubin who put CITI Group into the sewer.
Clinton, plus Bill at no extra cost, who was proud to vote for the Iraq war before she was against it.

JUST WORDS JUST WORDS

[merlinscrt]

I agree sanvan11 we need to look at it objectively. The media coined the phrase "GO IT ALONE MENTALITY" Really it takes all of washington to fail us until we hold them all accountable it will continue. THERE NEEDS TO BE AN OVERSITE COMMITTEE FOR THE GOVERNMENT OH YA THATS US THE TAXPAYER. LET''S US BE MORE INVOLVED

[punkinpie1]

I know that nobody here has change my mind on this. So
I will close this by saying that a lot of people who got layed off didn''t ask to be layed off. Our jobs were lost to other countries like China who got tax breaks to do that. So I hope that everyone who has a job can hang onto their jobs. I wish everyone here well with the holiday season. Happy Holidays!

[merlinscrt]

Once again we are not responsible for our action and the actions of our ELECTED OFFICALS. WE DID ELECT THE NOT TO FIND EXCUSES BUT RESULTS RIGHT. The problem with the auto industry is that people like me want comfort and are willing to pay for it. For the longest time the auto industry was suppling what the public wanted. When ever gas prices skyrocket the same people complain about fuel efficency. There is no reason cars and trucks shouldn''t be getting 35 to 40 miles a gallon. But when fuel prices fall everyone forgets. So until the american publc decides that is what they want it will continue to see saw. People decided to live in the suburbs which in some cities is a 20 to 30 mile round trip.That is called urban sprawl

[punkinpie1]

I think too many people here really don''t know what is going to happen when Obama takes oath. We are putting the cart before the horse. Even with my situation right now I have hope things will get better for this country. I am asking all of us to please try to have hope for this country. Hope is what this country started with. Without it we mise well give up. I have expectations I will get called back to work one day. I know we as a country can do
better than what we are doing now. All I''ve seen here
myself included is a bunch of doubt. We need to be united in this great country. Yes we are diverse, yes
we have differences of opinions. But as a whole we are
in this great country together.

[merlinscrt]

I have talked to several people from other countries that love the U.S. Why are there so my people tring to get into the U.S. They see us as a land of opportunity. Why don''t you see that? Just a question. The democrats use the media only at election time if they thought it was a real problem why didn''t they go to the taxpayers or didn''t they understand the problem. who said I was a republican I am an indepentant because I really don''t trust eath party

[punkinpie1]

All George Bush has done is pander and made our deficit bigger by having this go it alone mentality. I have a question, has our national security any better since he got us in Iraq under false pretenses?

[punkinpie1]

For one thing you don''t know my situation. I don''t have one of thoughs variable interest mortgages. I had hopes this wasn''t going to happen to me. You see
I worked at a factory that was connected to the RV industry. It didn''t have anything to do with the government. Thanks to the skyrocketing fuel prices, and the governments inability to maindate fuel effient
cars and trucks caused a lot of people getting layed off. Wake up this is not cause people are lazy. We sell cars and trucks people don''t want to buy or could afford.

[whosaid1]

Rowdydfw: I''''m sorry but the GOVERNMENT did not put people in the situations they are in...people put themselves into whatever situation they are in.

Rowdy, I don''t agree with you a lot.....but, you are "right on" with this posting....well done!!