SPEAKER: PRESIDENT-ELECT BARACK OBAMA

[*] OBAMA: Good morning, everybody.

Yesterday, we talked about the need to jump-start our economy. I speak to you today mindful that we meet at a moment of great challenge for America, as our credit markets are stressed and our families are struggling. But as difficult as these times are, I’m confident that we’re going to rise to meet this challenge, if we’re willing to band together and recognize that Wall Street cannot thrive so long as Main Street is struggling; if we’re willing to summon a new spirit of ingenuity and determination; and if Americans of great intellect, broad experience, and good character are willing to serve in our government at its hour of need.

Yesterday, I announced four such Americans to help lead the economic team that will advise me as we seek to climb out of this crisis. Today, I’m pleased to announce two other key members of our team: Peter Orszag as director and Robert Nabors as deputy director of the Office of Management and Budget.

Now, before I explain why I selected these outstanding public servants, let me say a few words about the work that I’m asking them to undertake.

As I said yesterday, the economic crisis we face demands that we invest immediately in a series of measures that will help save or create 2.5 million jobs and put tax cuts in the pockets of the hard- pressed middle class. Many of those new jobs will come in areas such as energy independence, technology, and health care modernization that will strengthen our economy over the long term.

But if we are going to make the investments we need, we also have to be willing to shed the spending that we don’t need. In these challenging times, when we’re facing both rising deficits and a shrinking economy, budget reform is not an option. It’s a necessity.

We can’t sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness or exist solely because of the power of politicians, lobbyists, or interest groups. We simply can’t afford it.

This isn’t about big government or small government. It’s about building a smarter government that focuses on what works. That’s why I will ask my team to think anew and act anew to meet our new challenges.

We are going to go through our federal budget — as I promised during the campaign, page by page, line by line — eliminating those programs we don’t need and insisting that those that we do need operate in a sensible, cost-effective way.

Let me just give you one example of what I’m talking about. There’s a report today that, from 2003 to 2006, millionaire farmers received $49 million in crop subsidies even though they were earning more than the $2.5 million cutoff for such subsidies. Now, if this is true — and this was just a report this morning — but if it’s true, it is a prime example of the kind of waste that I intend to end as president.

We’re also going to focus on one of the biggest long-run challenges that our budget faces, namely the rising cost of health care in both the public and private sectors. This is not just a challenge, but also an opportunity to improve the health care that Americans rely on and to bring down the costs that taxpayers, businesses and families have to pay.

Now, that’s what the Office of Management and Budget will do in my administration: It will not only help design a budget and manage its implementation, but it’s also going to make sure that our government — your government — is more efficient and more effective at serving the American people.

And there’s no better person to help lead this effort as director of the OMB than my friend, Peter Orszag. Peter has been one of our nation’s leading voices on budgetary issues.

It’s said that a nation’s budget reflects its values and its priorities. I believe that’s true. And I know that Peter will bring to his work at the OMB a set of priorities that I and the American people share.

Throughout his career, he’s made significant contributions in our understanding of all the major economic challenges that we’re now confronting, from reducing medical costs to saving Social Security to fighting global climate change to helping put the dream of a college degree within the reach of more students.

As director of the Congressional Budget Office, he re-energized and reinvigorated the agency, while shifting its focus to confront the health care crisis that is not only a cause of so much suffering for so many families, but a rapidly growing portion of our budget and a drag on our entire economy.

But it’s not simply that Peter’s past career makes him qualified for this new appointment; it’s also that he has a vision for the future that I share.

He believes, as I do, that even as we take steps to restore discipline to our budget, we also have to take the steps right now that are necessary to solve our immediate crisis.

Peter doesn’t need a map to tell him where the bodies are buried in the federal budget. He knows what works and what doesn’t, what’s worthy of our precious tax dollars and what is not.

OBAMA: Just because a program, a special interest tax break, or corporate subsidy is hidden in this year’s budget does not mean that it will survive the next. The old ways of Washington simply can’t meet the challenges of today and tomorrow.

And no one is more able or more qualified to assist Peter in this work than deputy director of the OMB that I am nominating, Robert Nabors.

Rob will bring to this post experience in the executive branch, at the OMB, where he helped the Clinton administration achieve balanced budgets, as well as in the legislative branch, where he led the Appropriations Committee staff as a driving force for a responsible budget.

Together, Peter and Rob will help steer our budget through Congress so that I can sign it into law.

Now, let me be clear: These appointments, as well as the appointments that I announced yesterday, are not the sum of my economic team. These appointments are going to work closely with those that I have not yet announced — those include the secretaries of energy and labor, commerce and health and human services, as well as others in my administration — to design a recovery plan for both Wall Street and Main Street and to put our economy on a path to long- term growth and prosperity.

Because, at this moment, we must not only restore confidence in our markets; we also must restore the confidence of middle-class families that their government is on their side, that it’s working for them and on their behalf to meet their families’ needs.

That’s what I intend to do as president of the United States.

With that, I’m going to take a few questions.

QUESTION: Is this a greater degree of public involvement in the economy than you — sooner than you had originally planned? And if so, how do you square it with your reminder to us that there is only one president at a time?

OBAMA: Well, there is only one president at a time. That president is George W. Bush, and he will be president until I’m sworn in on January 20th.

Given the extraordinary circumstances that we find ourselves in, however, I think it is very important for the American people to understand that we are putting together a first-class team and for them to have clarity that we don’t intend to stumble into the next administration.

We are going to hit the ground running. We’re going to have clear plans of action. We intend to have the kind of economic recovery plan that is going to put 2.5 million people into jobs. We are going to make sure that we start focusing on energy, on health care, on revamping our education system so that it’s competitive in the 21st century, and, as I’m talking about today, that we are not going back to business as usual when it comes to our budget.

I mean, one of the concerns that people may have is, you’ve got this large stimulus package that the new president is proposing and members of Congress are talking about. Is this going to be more of the same when it comes to Washington spending?

And the answer — I want to be very clear — is no.

We are going to have to jump-start the economy. And there’s consensus that that requires a bold plan to make the investments in the future. But we have to make sure that those investments are wise; we have to make sure that we’re not wasting money in every area.

If there is — if we’re talking about health care, we want to put money into health care modernization that can help us save money over the long term. We don’t want to continue programs that aren’t working and making people healthier.

The same is true for education. The same is true in the Defense Department. The same is true in social spending.

So the fact that Rob and Peter are here today indicates the seriousness with which we’re taking this. And I think it’s important, given the uncertainty in the markets and given the very legitimate anxiety that the American people are feeling, that they know that their new president has a plan and is going to act swiftly and boldly.

OK. Peter — where’s Peter? I didn’t recognize you because you don’t have the floppy hat that you had during the campaign.

QUESTION: I actually do.

OBAMA: There it is. Man, that’s what I’m talking about.

QUESTION: Thank you, Mr. President-elect. Given the election results, what sort of mandate do you have from the voters, do you believe? And does a large Democratic majority in Congress present an opportunity to pass your agenda or is there a danger in this environment of overreach?

OBAMA: Well, first of all, we had, I think, a decisive win because of the extraordinary desire for change on the part of the American people.

OBAMA: And so I don’t think that there’s any question that we have a mandate to move the country in a new direction and not continue the same, old practices that have gotten us into the fix that we’re in.

But I won 53 percent of the vote. That means 46 percent or 47 percent of the country voted for John McCain.

And it’s important, as I said on election night, that we enter into the new administration with a sense of humility and a recognition that wisdom is not the monopoly of any one party.

In order for us to be effective, given the scope and the scale of the challenges that we face, Republicans and Democrats are going to have to work together.

And I think what the American people want more than anything is just commonsense, smart government. They don’t want ideology; they don’t want bickering; they don’t want sniping. They want action, and they want effectiveness. And that’s what Peter and Rob are going to help us provide.

When it comes to our budget, I think people don’t want to continue a budget — an argument about big government or small government. They want smart government and effective government.

And so what we’re going to do is to work as closely as we can with the Republican Party. My chief of staff, Rahm Emanuel, has already met with both caucuses. We want their input; we want their ideas.

One of the things I’m very pleased about is I think that we’re already seeing bipartisan accolades for the budget team that I’m putting together, because they recognize these are serious guys who are going to be honest about the budget challenges that we face.

That’s the kind of approach that I want. That’s what I think the American people are looking for.

QUESTION: Let me ask you a question on behalf of local political reporters all over the country. As you know, mayors and county board presidents and governors are facing budgets that are hemorrhaging from this economic downturn hundreds of millions of dollars.

And they’re faced with layoffs and tax increases they don’t want to impose. And they’re kind of wondering, to paraphrase the late, great Mike Royko, “Where’s ours?”

What in your plan speaks to the needs of governmental bodies? They’re not Main Street. They’re not Wall Street. They’re not the U.S. Capitol. But they’re Randolph and La Salle, which is City Hall, and they’re 2nd and Capitol, where you worked for eight years in Springfield.

Hundreds of your friends are wondering what you’re going to do, because they’re in desperate straits from the — from the standpoint of their budgets.

OBAMA: Well, look, this is an important point, and it’s one that I addressed during the campaign and is implicit in the economic recovery plan that I talked about yesterday and that I talked about on Saturday in my weekly address.

We are going to have to make sure that we are investing in roads, bridges, other infrastructure investments that lay the groundwork for long-term economic growth. A lot of that goes through our states and our local governments.

And one of the things that we’re going to also want to make sure of is that as part of our economic plan that we are fast-tracking some of these projects. And so the best way for us to do that may be, in some cases, to see what projects are already being undertaken by state and local governments and making sure that they have the funds to continue those projects.

So we’re going to be working very closely with governors. We’re going to be working very closely with mayors of towns small and large across the country. This economic recovery plan will require their input, their participation.

And part of our job is to make sure that we are listening to what’s happening on the ground, where the rubber hits the road, and not simply designing something out of Washington.

Now, this raises one other important point, though. Part of the charge of Peter and Rob and the rest of our budget team is to make sure that we are proceeding on projects and investments based on national priorities and not based on politics.

You mentioned sort of “my friends.” I want to be clear: Friendship doesn’t come into this. That’s part of the old way of doing business.

OBAMA: The new way of doing business is, let’s figure out what projects, what investments are going to give the American economy the most bang for the buck, how can we protect taxpayer dollars so that this money is not wasted, restore a sense of confidence among taxpayers that, when we spend our money, it’s on things that are actually going to improve their quality of life, create the jobs that are so desperately needed, help to spur on economic growth and business creation in the private sector.

That’s all part of the new way of doing business.

QUESTION: If I may follow up…

OBAMA: No follow-up, because we’ve got a bunch.

STAFF: Last question.

OBAMA: All right. We’ve got — I’m going to call on Steve Tomo (ph). Where’s Steve? And the reason I’m going to call on Steve, I understand that, as a lifelong White Sox fan, you were placed in the Cubs section yesterday, and I want to apologize for that. This is also part of the new way of doing business. When we make mistakes, we admit them.

QUESTION: Well, thank you, sir. That’s the change we need on behalf of White Sox fans.

(LAUGHTER)

Sir, as you inherit and add to what could be a staggering one- year deficit, maybe approaching $2 trillion, will you draw a line between temporary fixes or permanent programs, such as tax rebates versus tax cuts? And if not, how will you guard against this red ink becoming permanent?

OBAMA: It’s a great question. And the answer — the short answer is, yes, we’ve got to distinguish between a immediate and temporary infusion that’s going to be required to kick-start our economy and some of the structural spending that’s been taking place in Washington that has created this huge mountain of debt.

And part of the charge to my economic team is to find areas where we can get a twofer, where we’re getting both a short-term stimulus and we’re also laying the groundwork for long-term economic growth.

For example, during my campaign, I talked about the need to provide a tax cut to 95 percent of workers. Now, for us to get that tax cut in place, that is going to put money into the pockets of the middle class and will help them in spending for their basic needs. That can help the economy. The sooner we do that, the better.

That will also, though, restore some balance to our tax code over the long term. So that’s an example of where the immediate needs of the economy and the long-term concerns that we have are not necessarily incompatible.

Health care is another example. If we do a smart job of investing in health care modernization — let’s just say, as an example, helping local hospitals and providers set up electronic billing and electronic medical records, that experts across the spectrum consider to be an important step towards a more efficient health care system.

Now, somebody’s got to help set those up. We’ve got to buy computer systems and so forth. That’s an immediate boost to the economy, in some cases working with state and local governments, but it’s also laying the groundwork for reducing our health care costs over the long term.

Now, the last point I’ll make on this: We’re still going to have to make some tough choices. There are just going to be some programs that simply don’t work, and we’ve got to eliminate them.

And so I don’t think that there’s — there’s any way of denying the fact that my first priority and my first job is to get us on the path of economic recovery, to create 2.5 million jobs, to provide relief to middle-class families.

But as soon as the recovery is well under way, then we’ve got to set up a long-term plan to reduce the structural deficit and make sure that we’re not leaving a mountain of debt for the next generation.

And that’s the — that’s the job of Peter and Rob and the rest of the economic team that I introduced yesterday.

All right? OK, thank you, guys.

END

BARACK OBAMA, PRESIDENT-ELECT: The news this past week, including this morning’s news about Citigroup, has made it even more clear that we are facing an economic crisis of historic proportions.

Our financial markets are under stress. New home purchases in October were the lowest in half-a-century. Recently, more than 500,000 jobless claims were filed, the highest in 18 years.

And if we do not act swiftly and boldly, most experts now believe that we could lose millions of jobs next year.

While we can’t underestimate the challenges that we face, we also can’t underestimate our capacity to overcome them, to summon that spirit of determination and optimism that has always defined us, and to move forward in a new direction to create new jobs, reform our financial system, and fuel long-term economic growth.

We know this won’t be easy, and it won’t happen overnight. We’ll need to bring together the best minds in America to guide us, and that is what I’ve sought to do in assembling my economic team.

I’ve sought leaders who could offer both sound judgment and fresh thinking, both a depth of experience and a wealth of bold, new ideas, and most of all who share my fundamental belief that we cannot have a thriving Wall Street without a thriving Main Street, that in this country we rise or fall as one nation, as one people.

Today, Vice President-elect Biden and I are pleased to announce the nomination of four individuals who meet these criteria to lead our economic team: Timothy Geithner as secretary of treasury; Lawrence Summers, as the director of our National Economic Council; Christina Romer, as chair of the Council of Economic Advisers; and Melody Barnes, as director of domestic — the Domestic Policy Council. Having served in senior roles at Treasury, the IMF, and the New York Fed, Tim Geithner offers not just extensive experience shaping economic policy and managing financial markets; he also has an unparalleled understanding of our current economic crisis in all of its depth, complexity and urgency.

Tim will waste no time getting up to speed. He will start his first day on the job with a unique insight into the failures of today’s markets and a clear vision of the steps we must take to revive them.

The reality is that the economic crisis we face is no longer just an American crisis; it’s a global crisis. And we will need to reach out to countries around the world to craft a global response. Tim’s extensive international experience makes him uniquely suited to do that work.

Growing up partly in Africa and having lived and worked throughout Asia, having served as undersecretary of the treasury for international affairs, one of the many roles in the international arena, and having studied both Chinese and Japanese, Tim understands the language of today’s international markets in more ways than one.

OBAMA: Tim served with distinction under both Democrats and Republicans and has a long history of working comfortably and as an honest broker on both sides of the aisle.

With stellar performances and outstanding results at every stage of his career, Tim has earned the confidence and respect of business, financial and community leaders, members of Congress, and political leaders around the world. And I know he will do so once again as America’s next treasury secretary, the chief economic spokesman for my administration.

Now, like Tim, Larry Summers also brings a singular combination of skill, intellect and experience to the role he will play in our administration. As undersecretary, deputy secretary, and then secretary of the treasury, Larry helped guide us through several major international financial crises and was a central architect of the policies that led to the longest economic expansion in American history, with record surpluses, rising family incomes, and more than 20 million new jobs.

He also championed a range of measures, from tax credits to enhanced lending programs to consumer financial protections, that greatly benefited middle-income families.

As a thought leader, Larry has urged us to confront the problems of income inequality and the middle-class squeeze, consistently arguing that the key to a strong economy is a strong, vibrant, growing middle class. This idea is at the core of my own economic philosophy and will be the foundation of all of my economic policies.

And as one of the great economic minds of our time, Larry has earned a global reputation for being able to cut to the heart of the most complex and novel policy challenges. With respect to both our current financial crisis and other pressing economic issues of our time, his thinking, writing and speaking have set the terms of the debate.

I’m glad he will be by my side, playing the critical role of coordinating my administration’s economic policy in the White House, and I will rely heavily on his advice as we navigate the uncharted waters of this economic crisis.

As one of the most expert people in America on economic crises and how to solve them, my next nominee, Christina Romer, will bring a critically needed perspective to her work as chair of my Council of Economic Advisors.

Christina is both a leading — both a leading macroeconomist and a leading economic historian, perhaps best known for her work on America’s recovery from the Great Depression and the robust economic expansion that followed.

Since 2003, she’s been co-director of the National Bureau of Economic Research Monetary Economics program. She’s also a member of the bureau’s Business Cycle Dating Committee, the body charged with officially determining whether a recession has started and ended, experience which will serve her well as she advises me on our current economic challenges.

Christina has done groundbreaking research on many of the topics our administration will confront, from tax policy to fighting recessions. And her clear-eyed, independent analyses have received praise from both conservative and liberal thinkers alike. I look forward to her wise counsel in the White House.

Finally, we know that rebuilding our economy will require action on a great variety of fronts: from education and health care to energy and Social Security. Without sound policies in these areas, we can neither enjoy sustained economic growth nor realize our full potential as a people.

So I am extraordinarily pleased that Melody Barnes, one of the most respected policy experts in America, will serve as my director of domestic — the Domestic Policy Council, and that she will be working hand in hand with my economic policy team to chart a course to economic recovery.

An integral part of that course will be health care reform, and she will work closely with my secretary of health and human services on that issue.

As executive vice president for policy at the center of — at the Center for American Progress, Melody directed a network of policy experts dedicated to finding solutions for struggling middle-class families.

She also served as chief counsel to the great Senator Ted Kennedy on the Senate Judiciary Committee, working on issues ranging from crime to immigration to bankruptcy, and fighting tirelessly to protect civil rights, women’s rights, and religious freedom.

Melody’s brilliant legal mind and her long experience working to secure the liberties on which this nation was founded, as well as to secure the opportunities for those who’ve been left behind, make her a perfect fit for DPC director.

OBAMA: I am grateful that Tim, Larry, Christina and Melody have accepted my nomination, and I am looking forward to working closely with them in the months ahead. And that work starts today, because the truth is, we do not have a minute to waste.

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.

These extraordinary stresses on our financial system require extraordinary policy responses. And my administration will honor the public commitments made by the current administration to address this crisis.

Further, beyond any immediate actions we may take, we need a recovery plan for both Wall Street and Main Street, a plan that stabilizes our financial system and gets credit flowing again, while at the same time addressing our growing foreclosure crisis, helping our struggling auto industry, and creating and saving 2.5 million jobs, jobs rebuilding our infrastructure, our roads, our bridges, modernizing our schools, and creating the clean energy infrastructure of the 21st century.

Because at this moment, we need to restore both confidence in the markets and restore confidence of middle-class families, who find themselves working harder, earning less, and falling further and further behind.

I’ve asked my economic team to develop recommendations for this plan and to consult with Congress, the current administration, and the Federal Reserve on immediate economic developments over the next two months.

I’ve requested that they brief me on these matters on a daily basis. And in the coming weeks, I will provide the American people and the incoming Congress with an overview of their initial recommendations.

It is my hope that the new Congress will begin work on an aggressive economic recovery plan when they convene in early January so that our administration can hit the ground running.

With our economy in distress, we cannot hesitate and we cannot delay. Our families can’t afford to keep on waiting and hoping for a solution. They can’t afford to watch another month of unpaid bills pile up, another semester of tuition slip out of reach, another month where, instead of saving for retirement, they’re dipping into their savings just to get by. And I want to repeat: This will not be easy. There are no shortcuts or quick fixes to this crisis, which has been many years in the making, and the economy is likely to get worse before it gets better. Full recovery will not happen immediately.

And to make the investments we need, we’ll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices, as well, something I’ll be discussing further tomorrow.

Despite all of this, I am hopeful about the future. I have full confidence in the wisdom and ingenuity of my economic team and in the hard work, courage, and sacrifice of the American people.

And most of all, I believe deeply in the resilience and the spirit of this nation. I know we can work our way out of this crisis because we’ve done it before. And I know we will succeed once again if we put aside partisanship and politics and work together. That’s exactly what I intend to do as president of the United States.

With that, I’m happy to take a few questions.

QUESTION: (OFF-MIKE) wondering if you could give us some details (OFF-MIKE) stimulus package, how much it’s going to cost, where the money’s going to come from, and when do you want to see it enacted?

OBAMA: I want to see it enacted right away. It is going to be of a size and scope that is necessary to get this economy back on track.

I don’t want to get into numbers right now. Part of the task of this economic team behind me is to help to shape the details of that plan, in consultation with Congress, the Federal Reserve, and businesses, and — and thinkers across the country.

But I think the most important thing to recognize is that we have a consensus, which is pretty rare, between conservative economists and liberal economists, that we need a big stimulus package that will jolt the economy back into shape and that is focused on the 2.5 million jobs that I intend to create during the first part of my administration. We have to put people back to work.

Now, that runs in parallel with making sure that our financial system is stable. And so we’re going to have to do more than one thing at a time.

But across the board, people believe that this stimulus is critical.

OBAMA: And the first job of my economic team is to shape that economic stimulus package so that it is delivering on the 2.5 million jobs that we talked about and is also providing a down payment on the long-term strategies we need in terms of making this economy work for all Americans.

That means we have to invest in clean energy. We’re going to have to invest in the systems in our — in health care that can reduce costs for families and for businesses. It means that we’re going to have to invest in the education system to ensure that we’re competitive over the 21st century.

So not only do I want this stimulus package to deal with the immediate crisis, I want it also to lay the groundwork for long-term, sustained economic growth.

QUESTION: (OFF-MIKE) question is about taxes. Will you let the Bush tax cuts expire at the end of 2010 or will you use legislation to repeal them before that?

OBAMA: Well — well, I said during the campaign that my plan represented a net tax cut. And that’s important to remember: 95 percent of workers in this country would receive a net tax cut under my plan.

Now, the reason that’s important is not only is that good for families who are struggling, but it’s also part and parcel of what we need when it comes to stimulus.

We’re going to be putting money into people’s pockets so that they can spend on buying a new computer for their kid’s school, so that they can, you know, make sure that they are able to deal with heat and groceries and all the other strains on family budgets.

Now, what I’ve also said during the course of this campaign is we’ve got to restore some balance to our tax code. And the Bush tax cuts were disproportionately targeted towards the very wealthiest Americans. Those who are making more than $250,000 a year can afford to pay a little bit more.

And it is important, if we’re going to help pay for some of these expenditures that are absolutely necessary to get our economy back on track, that those who are in a position to pay a little bit more do so.

Whether that’s done through repeal or whether that’s done because the Bush tax cuts are not renewed is something that my economic team will be providing me a recommendation on.

But the basic principle is that we’re going to provide tax cuts to the vast majority of Americans, the middle class that have been struggling over the last eight years, that those who’ve benefited disproportionately over the last eight years, the very wealthiest among us, will pay a little bit more in order for us to be able to invest in the economy and get it back on track.

QUESTION: Mr. President-elect, I’d like to ask a follow-up on the size of the stimulus package. Senator Schumer said yesterday up to $700 billion was needed. Today, investor Barton Biggs said as much as $1 trillion. Could you give taxpayers a range of — of the figure that you’re thinking of?

OBAMA: I’m not going to discuss numbers right now, because I think it’s important for my economic team to come back with a recommendation. But what I want to emphasize is that there is a consensus among across the political spectrum that we need a stimulus, and we have to make sure that the stimulus is significant enough that it really gives a jolt to the economy, that it is putting people back to work, that it is making investments, that it is restoring some confidence in the business community that, in fact, their products and services are going to have customers.

And so we are going to do what’s required to jolt this — this economy back — back into shape.

Now, it’s going to be costly. And one of the things that we know already is that, even if we did nothing further for the remainder of this year, that we’re going to see a substantial deficit next year, bigger than we’ve seen in a very long time.

And so I think American taxpayers are understandably concerned, if we already have a big deficit, and now we’re added an additional stimulus, how are we going to pay for all that?

The right answer is that we have to first focus on getting the economy back on track. We’ve got to first focus on making sure that we’re creating those 2.5 million jobs. We’ve got to make sure that the investments are made to sustain economic growth over the long term.

OBAMA: And then what we also have to do as part of this package — and this is going to be one of the major charges to my economic team — is that we reform how business is done in Washington and how the budgeting process works, how projects are done, so that we have a path towards a sustainable and responsible budget scenario down — down the line.

So the way to think about it is short term, we’ve got to focus on boosting the economy and creating 2.5 million jobs, but part and parcel of that is a plan for a sustainable fiscal situation long term, and that’s going to require some reforms in Washington. And I’m going to be discussing that more tomorrow.

QUESTION: Thank you, Mr. President-elect (OFF-MIKE) has been criticized in some quarters for taking an ad hoc approach to financial rescues. Can you describe how your new team’s approach might differ from the approach that we’ve had for the last year?

OBAMA: Well, I don’t want to look backwards. I think that — as I said, we’ve had an unprecedented crisis.

I mentioned in my “60 Minutes” interview that I’m sure there are some things that didn’t work exactly the way Secretary Paulson intended. He’d be the first to admit that. Some things have obviously helped in terms of stabilizing the financial system.

But what I want to make sure is that, moving forward, we are clearly articulating for the American people and the business community what our end goals are. Where are we going? What are we trying to achieve? And that there’s clarity and transparency to our plan. That doesn’t mean that there aren’t going to be adjustments over the course of weeks or months to respond to changing situations, but I think part of what we’ve seen is, is confusion on the part of the markets sometimes in terms of what the overall direction might be. And we want to make sure that we’re providing as much clarity as possible.

The other point I would make is that, even as we are doing whatever’s required to stabilize the financial system — and I think that’s a commitment that exists currently in the administration and is going to be a top priority for me during the transition, as well as once I take — once I’m sworn in as president.

Even as we focus on making sure that the financial system is stable, that we also recognize that a strong Main Street will reinforce and help a strong Wall Street and that we can’t separate those two things.

And a working principle for me is going to be, are we looking at, for example, home foreclosures in a systematic way and addressing some of the struggles that are taking place outside of Wall Street, not only because it’s good for working families, but also because it’ll help stabilize the financial system?

QUESTION: Thank you, Mr. President-elect. I was wondering if you saw the auto hearings last week. I wonder if you think the automakers made a convincing case for some kind of rescue package from Washington. And how do you want to see Congress proceed on that issue?

OBAMA: The auto industry historically has been the backbone of America’s manufacturing base. And it’s not just the auto industry. It’s not just the big three. It’s also all the suppliers, all the businesses that in one way or another are part of our auto industry that are at stake here.

So I’ve said before — and I will repeat — we can’t allow the auto industry simply to — to vanish. We’ve got to make sure that it is there and that the workers, and suppliers, and businesses that rely on the auto industry stay in business.

What I also have said is that we can’t just write a blank check to the auto industry. Taxpayers can’t be expected to pony up more money for an auto industry that has been resistant to change.

And I was surprised that they did not have a better-thought-out proposal when they arrived in Congress. I think Congress did the right thing, which is to say, “You guys need to come up with a plan and come back before you’re getting any taxpayer money.”

OBAMA: And my attitude is that we should help the auto industry, but what we should expect is that any additional money that we put into the auto industry, any help that we provide is designed to assure a long-term sustainable auto industry and not just kicking the can down the road.

QUESTION: (OFF-MIKE) OBAMA: Well, the — I think that the auto industry needs to present us with some clarity in terms of the dollar figures that they’re talking about, but more importantly, are they describing for us an auto industry that is focused on retooling, understands that we’re entering into a new energy economy, that is going to be competitive globally?

That’s the kind of plan that the American people I think want to see. Nobody wants to see more job loss. And I think Americans take great pride in the history of the American automobile industry.

But taxpayers don’t want to see more money wasted, so we need to see a plan. And when we see a plan, we’re going to, I think, be able to shape the kind of assistance package that makes sense.

All right, I’m going to take one more question.

QUESTION: (OFF-MIKE) Mr. President-elect, how should the (OFF- MIKE) having talks with Secretary Paulson and other members of the administration on that?

OBAMA: Well, I spoke with President Bush today. I spoke with Chairman Bernanke today. And let me repeat: We have to do whatever is required to keep the financial system working and capital flowing.

That’s not important just for the banks. It’s important for our entire economy. It’s important for small businesses and large businesses alike. It’s important for their employees. It’s important for retail sales.

So my commitment is to do what’s required so that our financial system works and credit flows. President Bush has indicated that he has the same approach, the same attitude.

A lot of authority has already been provided to the administration, to Secretary Paulson. Chairman Bernanke has authority, as well. And we need to make sure that that authority is used forcefully in the coming weeks to stabilize the current situation.

I will make further assessments about whether it’s necessary to draw down additional TARP money, as the administration and Treasury Secretary Paulson and Bernanke provide me more real-time information.

But I think what’s most important for the American people to understand is that we are united in making sure that the financial system works and operates the way it needs to.

OK. All right, thank you, guys. Appreciate it.

Obama: Thank you very much, everybody. Thank you very much.

This morning, we woke up to more sobering news about the state of our economy. The 240,000 jobs lost in October marks the 10th consecutive month that our economy has shed jobs. In total, we’ve lost nearly 1.2 million jobs this year, and more than 10 million Americans are now unemployed.

Tens of millions of families are struggling to figure out how to pay the bills and stay in their homes. Their stories are an urgent reminder that we are facing the greatest economic challenge of our lifetime, and we’re going to have to act swiftly to resolve it.

Now, the United States has only one government and one president at a time. And until January 20th of next year, that government is the current administration.

I’ve spoken to President Bush. I appreciate his commitment to ensuring that his economic policy team keeps us fully informed as developments unfold. And I’m also thankful for his invitation to the White House.

Immediately after I become president, I’m going to confront this economic crisis head on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.

And this morning, I met with members of my Transition Economic Advisory Board, who are standing behind me, alongside my vice president-elect, Joe Biden.

They will help to guide the work of my transition team, working with Rahm Emanuel, my chief of staff, in developing a strong set of policies to respond to this crisis. We discussed in the earlier meeting several of the most immediate challenges facing our economy and key priorities on which to focus on in the days and weeks ahead.

First of all, we need a rescue plan for the middle class that invests in immediate efforts to create jobs and provide relief to families that are watching their paychecks shrink and their life savings disappear.

A particularly urgent priority is a further extension of unemployment insurance benefits for workers who cannot find work in the increasingly weak economy.

A fiscal stimulus plan that will jump-start economic growth is long overdue. I’ve talked about it throughout this — the last few months of the campaign. We should get it done.

Second, we have to address the spreading impact of the financial crisis on the other sectors of our economy: small businesses that are struggling to meet their payrolls and finance their holiday inventories; and state and municipal governments facing devastating budget cuts and tax increases.

We must also remember that the financial crisis is increasingly global and requires a global response.

The news coming out of the auto industry this week reminds us of the hardship it faces, hardship that goes far beyond individual auto companies to the countless suppliers, small businesses and communities throughout our nation who depend on a vibrant American auto industry.

The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil.

I would like to see the administration do everything it can to accelerate the retooling assistance that Congress has already enacted. In addition, I have made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars here in the United States of America.

And I was glad to be joined today by Governor Jennifer Granholm, who obviously has great knowledge and great interest on this issue.

I’ve asked my team to explore what we can do under current law and whether additional legislation will be needed for this purpose.

Third, we will review the implementation of this administration’s financial program to ensure that the government’s efforts are achieving their central goal of stabilizing financial markets while protecting taxpayers, helping homeowners, and not unduly rewarding the management of financial firms that are receiving government assistance.

It is absolutely critical that the Treasury work closely with the FDIC, HUD, and other government agencies to use the substantial authority that they already have to help families avoid foreclosure and stay in their homes.

Finally, as we monitor and address these immediate economic challenges, we will be moving forward in laying out a set of policies that will grow our middle class and strengthen our economy in the long term. We cannot afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, health care, education, and tax relief for middle-class families.

My transition team will be working on each of these priorities in the weeks ahead, and I intend to reconvene this advisory board to discuss the best ideas for responding to these immediate problems.

Let me close by saying this. I do not underestimate the enormity of the task that lies ahead. We have taken some major action to date, and we will need further action during this transition and subsequent months.

Some of the choices that we make are going to be difficult. And I have said before and I will repeat again: It is not going to be quick, and it is not going to be easy for us to dig ourselves out of the hole that we are in.

But America is a strong and resilient country. And I know we will succeed, if we put aside partisanship and politics and work together as one nation. That’s what I intend to do.

With that, let me open it up for some questions. And I’m going to start right here with you.

Question: Thank you, Mr. President-elect. I wonder what you think any president can accomplish during their first 100 days in office to turn the economy around? How far can you go? And what will be your priorities on day one?

Obama: Well, I think that a new president can do an enormous amount to restore confidence, to move an agenda forward that speaks to the needs of the economy and the needs of middle-class families all across the country.

I’ve outlined during the course of the campaign some critical issues that I intend to work on.

We have a current financial crisis that is spilling out into rest of the economy, and we have taken some action so far. More action is undoubtedly going to be needed. My transition team is going to be monitoring very closely what happens over the course of the next several months.

The one thing I can say with certainty is that we are going to need to see a stimulus package passed either before or after inauguration.

We are going to have to focus on jobs, because the hemorrhaging of jobs has an impact, obviously, on consumer confidence and the ability of people to — to buy goods and services and can have enormous spillover effects.

And I think it’s going to be very important for us to provide the kinds of assistance to state and local governments to make sure that they don’t compound some of the problems that are already out there by having to initiate major layoffs or initiate tax increases.

So there are some things that we know we’re going to have to do, but I’m confident that a new president can have an enormous impact. That’s why I ran for president.

Question: (off-mike) … from House Democrats that the stimulus package may be in trouble, that it’s going to be a hard time getting out of a lame-duck session. Are you still confident that you would be able to get something done before you actually take office?

Obama: I want to see a stimulus package sooner rather than later. If it does not get done in the lame-duck session, it will be the first thing I get done as president of the United States.

Question: Senator, for the first time since the Iranian revolution, the president of Iran sent a congratulations note to a new U.S. president. I’m wondering if, first of all, if you responded to President Ahmadinejad’s note of congratulations and, second of all, and more importantly, how soon do you plan on sending low-level envoys to countries such as Iran, Syria, Venezuela, Cuba, to see if a presidential-level talk would be productive?

Obama: I am aware that the letter was sent. Let me state — repeat what I stated during the course of the campaign.

Iran’s development of a nuclear weapon I believe is unacceptable. And we have to mount a international effort to prevent that from happening.

Iran’s support of terrorist organizations I think is something that has to cease.

I will be reviewing the letter from President Ahmadinejad, and we will respond appropriately. It’s only been three days since the election. Obviously, how we approach and deal with a country like Iran is not something that we should, you know, simply do in a knee- jerk fashion. I think we’ve got to think it through.

But I have to reiterate once again that we only have one president at a time. And I want to be very careful that we are sending the right signals to the world as a whole that I am not the president and I won’t be until January 20th.

Question: Picking up what we were just talking about, your meeting with President Bush on Monday. When — he is still the decider, obviously, stating the obvious. When you disagree with decisions he makes, will you defer? Will you challenge? Will you confront? And if it becomes confrontational, could that rattle the markets even more?

Obama: Well, President Bush graciously invited Michelle and I to — to meet with him and First Lady Laura Bush. We are gratified by the invitation. I’m sure that, in addition to taking a tour of the White House, there’s going to be a substantive conversation between myself and the president.

I’m not going to anticipate problems. I’m going to go in there with a spirit of bipartisanship and a sense that both the president and various leaders in Congress all recognize the severity of the situation right now and want to get stuff done.

And, you know, undoubtedly there may end up being differences between not just members of different parties, but between people within the same party.

The critical point and I think the critical tone that has to be struck by all of us involved right now is the American people need help. This economy is in bad shape. And we have just completed one of the longest election cycles in recorded history.

Now is a good time for us to set politics aside for a while and think practically about what will actually work to move the economy forward. And it’s in that spirit that I’ll have the conversation with the president.

Question: Thank you, Mr. President-elect. With the country facing two wars and a financial crisis, do you think it’s important for you to move especially quickly to fill key cabinet posts, such as treasury secretary and secretary of state?

Obama: When we have an announcement about cabinet appointments, we will make them. There is no doubt that I think people want to know who’s going to make up our team.

And I want to move with all deliberate haste, but I want to emphasize “deliberate” as well as “haste.” I’m proud of the choice I made of vice president, partly because we did it right. I’m proud of the choice of chief of staff, because we thought it through.

And I think it’s very important, in all these key positions, both in the economic team and the national security team, to — to get it right and not to be so rushed that you end up making mistakes.

I’m confident that we’re going to have an outstanding team, and we will be rolling that out in subsequent weeks.

Question: Yes, sir. To what extent — to what extent are you planning to use your probably pretty great influence in determining the successor for your Senate seat? And what sort of criteria should the governor be looking at in filling that position?

Obama: This is the governor’s decision; it is not my decision.

And I think that the criteria that I would have for my successor would be the same criteria that I’d have if I were a voter: somebody who is capable; somebody who is passionate about helping working families in Illinois meet their — meet their dreams.

And I think there are going to be a lot of good choices out there, but it is the governor’s decision to make, not mine.

Lynn Sweet?

Question: Mr. President-elect …

Obama: What happened to your arm, Lynn?

Question: I cracked my shoulder running to your speech on election night.

Obama: Oh, no.

(Laughter)

Question: (inaudible)

Obama: I think that was the only major incident during the — the entire Grant Park celebration.

Question: Thank you for asking. Here’s my question. I’m wondering what you’re doing to get ready. Have you spoke to any living ex-presidents, what books you might be reading?

Everyone wants to know, what kind of dog are you going to buy for your girls? Have you decided on a private or public school for your daughters?

Obama: Let — let me list those off.

In terms of speaking to former presidents, I’ve spoken to all of them that are living. Obviously, President Clinton — I didn’t want to get into a Nancy Reagan thing about, you know, doing any seances.

I have re-read some of Lincoln’s writings, who’s always an extraordinary inspiration.

And, by the way, President Carter, President Bush, Sr., as well as the current president have all been very gracious and offered to provide any help that they can in this transition process.

With respect to the dog, this is a major issue. I think it’s generated more interest on our Web site than just about anything.

We have — we have two criteria that have to be reconciled. One is that Malia is allergic, so it has to be hypoallergenic. There are a number of breeds that are hypoallergenic.

On the other hand, our preference would be to get a shelter dog, but, obviously, a lot of shelter dogs are mutts like me. So — so whether we’re going to be able to balance those two things I think is a pressing issue on the Obama household.

And with respect to schools, Michelle will be — will be scouting out some schools. We’ll be making a decision about that in the future.

Question: You are now privy to a lot of intelligence that you haven’t had access to before, in fact, much of what the president sees, I’m sure all of it.

First of all, do you — what do you think about the state of U.S. intelligence, whether you think it needs beefing up, whether you think there’s enough interaction between the various agencies?

And, second of all, has anything that you’ve heard given you pause about anything you’ve talked about on the campaign trail?

Obama: Well, as you know, if — if there was something I had heard, I couldn’t tell you. But…

Question: (off-mike)

Obama: I have received intelligence briefings. And I will make just a general statement.

Our intelligence process can always improve. I think it has gotten better. And, you know, beyond that, I don’t think I should comment on the nature of the intelligence briefings.

That was a two-parter. Was there another aspect to that?

Question: Well, just whether — you know, absent what you’ve heard…

Obama: OK, I get you.

Question: … whether anything has given you pause.

Obama: I’m going to skip that.

Question: Mr. President-elect, do you still intend to seek income tax increases for upper-income Americans? And if so, should these Americans expect to pay higher taxes in 2009?

Obama: The — my tax plan represented a net tax cut. It provided for substantial middle-class tax cuts; 95 percent of working Americans would receive them.

It also provided for cuts in capital gains for small businesses, additional tax credits. All of it is designed for job growth.

My priority is going to be, how do we grow the economy? How do we create more jobs?

I think that the plan that we’ve put forward is the right one, but, obviously, over the next several weeks and months, we’re going to be continuing to take a look at the data and see what’s taking place in the economy as a whole.

But, understand, the goal of my plan is to provide tax relief to families that are struggling, but also to boost the capacity of the economy to grow from the bottom up.
All right. Thank you very much, guys

Otherwise … enjoy the victory speech:

(Source: Fox News)

PRESIDENT-ELECT BARACK OBAMA: If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

Its the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

Its the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled – Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

Its the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

Its been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and hes fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nations promise in the months ahead.

I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

I would not be standing here tonight without the unyielding support of my best friend for the last sixteen years, the rock of our family and the love of my life, our nations next First Lady, Michelle Obama. Sasha and Malia, I love you both so much, and you have earned the new puppy thats coming with us to the White House. And while shes no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics – you made this happen, and I am forever grateful for what youve sacrificed to get it done.

But above all, I will never forget who this victory truly belongs to – it belongs to you.

I was never the likeliest candidate for this office. We didnt start with much money or many endorsements. Our campaign was not hatched in the halls of Washington – it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generations apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

I know you didnt do this just to win an election and I know you didnt do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime – two wars, a planet in peril, the worst financial crisis in a century. Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how theyll make the mortgage, or pay their doctors bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America – I have never been more hopeful than I am tonight that we will get there. I promise you – we as a people will get there.

There will be setbacks and false starts. There are many who wont agree with every decision or policy I make as President, and we know that government cant solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way its been done in America for two-hundred and twenty-one years – block by block, brick by brick, calloused hand by calloused hand.

What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek – it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, its that we cannot have a thriving Wall Street while Main Street suffers – in this country, we rise or fall as one nation; as one people.

Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House – a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, We are not enemies, but friends…though passion may have strained it must not break our bonds of affection. And to those Americans whose support I have yet to earn – I may not have won your vote, but I hear your voices, I need your help, and I will be your President too.

And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world – our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down – we will defeat you. To those who seek peace and security – we support you. And to all those who have wondered if Americas beacon still burns as bright – tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

For that is the true genius of America – that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

This election had many firsts and many stories that will be told for generations. But one thats on my mind tonight is about a woman who cast her ballot in Atlanta. Shes a lot like the millions of others who stood in line to make their voice heard in this election except for one thing – Ann Nixon Cooper is 106 years old.

She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldnt vote for two reasons – because she was a woman and because of the color of her skin.

And tonight, I think about all that shes seen throughout her century in America – the heartache and the hope; the struggle and the progress; the times we were told that we cant, and the people who pressed on with that American creed: Yes we can.

At a time when womens voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot. Yes we can.

When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that We Shall Overcome. Yes we can.

A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves – if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

This is our chance to answer that call. This is our moment. This is our time – to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth – that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we cant, we will respond with that timeless creed that sums up the spirit of a people:

Yes We Can. Thank you, God bless you, and may God Bless the United States of America.