Currying Favor While the Economy Lurks

It's hard to believe there's almost two and a half months to go before Barack Obama is inaugurated. Already, people and interests are maneuvering, schmoozing, and fighting to curry favor with the new president. There are some hard facts as to appointments. We do know he's offered Rahm Emanuel the job of chief of staff. He's also got the outlines of a transition team in place. He knows he's got to hit the ground running, and the economy will be his first priority.

If there's a subtext to the way out of the current economic mess, it would have to be what to do with that $700 billion dollars that's supposed to buoy the financial markets. Remember that at first, the money was supposed to be used to buy up bad assets of financial institutions. That mission has obviously changed. At least some of that money will be used to capitalize the banks. Our president-elect will have to figure out how it will be disbursed, and to whom. Will he change the initial terms and outlays the banks were told about a few weeks ago?

And what about the possibility of another economic stimulus package? Democrats in Congress, lead by Speaker Nancy Pelosi, have this as a priority. It's not known yet if Barack Obama shares the immediacy of that agenda. He might, since all signs point to a grim 2009 on the economic front. There will be layoffs, and they could reach huge numbers all across the country. People thrown out of work will have problems paying their bills, meaning the mortgage crisis will continue, and consumer spending will continue its decline.

All of this speaks to the hard work ahead for the incoming president. George W. Bush hasn't left him much to work with. If there's a silver lining to all these clouds, it's contained in what a friend told me at the gym earlier today. "Barack is a smart man. He's going to surround himself with smart people. They'll figure a way to deal with this".

Is my friend right? You tell me.