Much has been said and continues to speculated on as to whether or not New York Gov. David Paterson was disgusted with Caroline Kennedy and her attempt to serve out Hillary Clinton’s U.S. Senate term; or, rather was he going to annoint her at a press conference later this week.  Follow the link above and you can read the latest from the Old Grey Lady.

There are more questions than answers.  Was she so stricken by her uncle Sen. Edward M. Kennedy’s seizure on Inauguration Day that she could just not carry on?  If so, glad she’s out, we need steel in the Senate right now.  Did she have a household worker problem?  Who really cares?  That’s so Clinton Era.  According to the latest numbers about 5% of the U.S. population is undocumented, illegal.  Tax problems?  Caroline, you could’ve been contrite a la Timothy Geithner.  After all, if a financial genius can get away with dodging taxes, surely you could’ve charmed your way out of it.

Here’s what I think.  Hillary just had enough.  After all, it was Teddy and Caroline that annointed Barack the next Jack.  Secretary of State or not, it was just too much for these Obamaniacs to occupy that Senate seat she had carpet bagged so hard for.  I think Hillary did her in.

Caroline seems to signal that Uncle Teddy’s health has something to do with her change in plans.  Here’s how I think that figures in.  Sen. Kennedy will hang as long as he can, but it’s not likely to be another three years.  He retires and voila!  Gov. Deval Patrick of Massachussetts appoints Caroline – and the legacy continues.

• On First Day, Obama Quickly Sets Tone – New York Times
• Obama halts prosecutions at Guantanamo – New York Times
• Oath administered once again – New York Times
• Clinton approved, Holder delayed – New York Times
• Obama: New era of openness – Washington Post
• Lobbying rules tightened – Washington Post
• Guantanamo closure faces hurdles – Washington Post
• Inauguration head count: 1.8 million – Washington Post
• Obama asks Pentagon for responsible Iraq drawdown – Associated Press

Word out tonight is that the Obama team has approached the CNN star who was also a health care adviser to Hillary Clinton when she was First Lady.

I’ll be honest with you, I have no idea who currently holds the surgeon general’s post.  I’m not even going to expend the energy to look because whoever it is won’t be there in a month or two.

I remember Jocelyn Elders – I think she advocated something that the right wingers got all bent out of shape about.  I also remember C. Everett Koop, he was the guy who stood up to the cigarette industry.  I also remember that if you held a picture of Koop upside-down, it looked like Koop right-side up.

In all seriousness we haven’t had a surgeon general since Koop who focused the public’s interest on one or a series of public health concerns in a way that made a difference.  A necessary part of health care reform is going to have to be wellness – or what we call in the business world, “population health management” (PHM)

PHM means you encourage, reward, cajole folks to lose unnecessary weight, quit smoking, exercise, etc.  Along the way, as people shed pounds and breath easier they get off of meds, make fewer trips to the ER and are sick less often.  People are healthier and happier and the business – or society – benefits from lower health care costs.

Gupta would be a perfect pick for surgeon general as he is an accomplished physician, surgeon and is media saavy.  It probably doesn’t hurt that he’s a handsome devil.  Having such a surgeon general would be a great asset to the Obama Administration as it charts its course through reforming this nation’s dysfunctional health care system.

• Caroline Kennedy to seek NY Senate seat – New York Times
• Kennedy will approach Paterson on Senate seat - Washington Post
• Caroline Kennedy wants Senate seat: Official - Bloomberg

Part 2

Part 3

SPEAKERS: PRESIDENT-ELECT BARACK OBAMA; SEN. HILLARY RODHAM CLINTON, D-N.Y.; SUSAN E. RICE, NATIONAL SECURITY POLICY WORKING GROUP LEADER, OBAMA-BIDEN PRESIDENTIAL TRANSITION TEAM; GENERAL JIM JONES (USMC, RET.) SECRETARY OF DEFENSE ROBERT M. GATES;
GOVERNOR JANET NAPOLITANO, D-ARIZ., ADVISORY BOARD MEMBER, OBAMA-BIDEN PRESIDENTIAL TRANSITION TEAM; FORMER DEPUTY ATTORNEY GENERAL ERIC HOLDER; VICE PRESIDENT-ELECT JOSEPH R. BIDEN JR.

[*] OBAMA: Good morning, everybody. I hope you all had a wonderful Thanksgiving.

Last week, we announced our economic team which is working as we speak to craft an economic recovery program to create jobs and grow our struggling economy.

Today, Vice President-elect Biden and I are pleased to announce our national security team. The national security challenges we face are just as great and just as urgent as our economic crisis. We are fighting two wars. Our old conflicts remain unresolved. And newly- asserted powers have put strains on the international system.

The spread of nuclear weapons raises the peril that the world’s deadliest technologies could fall into dangerous hands. Our dependence on foreign oil empowers authoritarian governments and endangers our planet.

America must also be strong at home to be strong abroad. We need to provide education and opportunity to all our citizens so every American can compete with anyone anywhere. And our economic power must sustain our military strength, our diplomatic leverage, and our global leadership.

The common thread linking these challenges is the fundamental reality that in the 21st century, our destiny is shared with the world’s from our markets to our security. From our public health to our climate, we must act with that understanding that now more than ever, we have a stake in what happens across the globe. And as we learn so painfully on 9-11, terror cannot be contained by borders nor safely provided by oceans alone.

Last week, we were reminded of this threat once again when terrorists took the lives of six Americans among nearly 200 victims in Mumbai.

In the world we seek, there is no place for those who kill innocent civilians to advance hateful extremism. This weekend, I told Prime Minister Singh of India that Americans stand with the people of India in this dark time. And I am confident that India’s great democracy is more resilient than killers who would tear it down.

OBAMA: And so in this uncertain world, the time has come for a new beginning, a new dawn of American leadership to overcome the challenges of the 21st century and to seize the opportunities embedded in these challenges.

We will strengthen our capacity to defeat our enemies and support our friends. We will renew old alliances and forge new and enduring partnerships. We will show the world once more that America is relentless in the defense of our people, steady in advancing our interests, and committed to the ideals that shine as a beacon to the world. Democracy and justice, opportunity and unyielding hope because American values are America’s greatest export to the world.

To succeed, we must pursue a new strategy that skillfully using, balances, and integrates all elements of American power, our military, and diplomacy, our intelligence and law enforcement, our economy and the power of our moral example. The team that we’ve assembled here today is uniquely suited to do just that.

In their past service and plans for the future, these men and women represent all of the those elements of American power and the very best of the American example. They’ve served in you uniform and as diplomats. They have worked as legislators, law enforcement officials, and executives. They share my pragmatism about the use of power and my sense of purpose about America’s role as a leader in the world.

I have known Hillary Clinton as a friend, a colleague, a source of counsel, and a tough campaign opponent. She possesses an extraordinary intelligence and a remarkable work ethic. I am proud that she will be our next secretary of state. She’s an American of tremendous stature who will have my complete confidence, who know many of the world’s leaders, who will command respect in every capital, and who will clearly have the ability to advance our interests around the world.

Hillary’s appointment is a sign to friend and foe of the seriousness of my commitment to renew American diplomacy and restore our alliances. There’s much to do from preventing the spread of nuclear weapons to Iran and North Korea, to seeking a lasting peace between Israel and the Palestinians, to strengthening international institutions.

I think no doubt that Hillary Clinton is the right person to lead our State Department and to work with me in tackling this ambitious foreign policy agenda. At a time when we face unprecedented transition amidst two wars, I’ve asked Secretary Robert Gates to continue as secretary of defense. And I’m pleased that he’s accepted. Two years ago, he took over the Pentagon at a difficult time. He restored accountability. He won the confidence of military commanders and the trust of our brave men and women in uniform as well as their families.

He earned the respect of members of Congress on both sides of the aisle for his pragmatism and competence. He knows that we need a sustainable national security strategy. And that includes a bipartisan consensus at home.

As I said throughout the campaign, I will be giving Secretary Gates and our military a new mission as soon as I take office — responsibly ending the war in Iraq through a successful transition to Iraqi control.

We will ensure that we have the strategy and resources to succeed against Al Qaida and the Taliban. As Bob said not too long ago, Afghanistan is where the War on Terror began, and it is where it must end. Going forward, we will continue to make the investments necessary to strengthen our military and increase our ground forces to defeat the threats of the 21st century.

Eric Holder has the talent and commitment to succeed as attorney everyone from his first day on the job, which is even more important in a transition that demands vigilance. He has distinguished himself as a prosecutor, a judge, and a senior official. And he is deeply familiar with the law enforcement challenges we face from terrorism to counterintelligence, from white-collar crime to public corruption.

Eric also has the combination of toughness and independence that we need at the Justice Department. Let me be clear. The attorney general serves the American people. And I have every expectation that Eric will protect our people, uphold the public trust, and adhere to our Constitution.

Janet Napolitano offers of the experience and executive skills we need in the next secretary of homeland security. She has spent her career protecting people as a U.S. attorney, an attorney general, and as the governor of Arizona. She understands the need for a Department of Homeland Security that has the capacity to help prevent terrorist attacks and respond to catastrophe be it manmade or natural.

OBAMA: Janet assumes this critical role having learned the lessons, some of them painful, of the last several years from 9-11 to Katrina. She insists on competence and accountability. She knows firsthand the need to have a partner in Washington that works well with state and local governments.

She understands as well as anyone the danger of an unsecure border. And she will be a leader who can reform a sprawling department while safeguarding our homeland.

Susan Rice will take on the crucial task of serving as permanent representative of the United States to the United Nations. Susan has been a close and trusted adviser. As in previous administrations, the UN ambassador will serve as a member of my Cabinet and in integral member of my team.

Her background as a scholar on the National Security Council and assistant secretary of state will serve our nation well at the United Nations. Susan knows the global challenges we face demand global institutions that work.

She shares my belief that the UN is an indispensable and imperfect forum. She will carry the message that our commitment to multi-lateral action must be coupled with a commitment to reform.

We need the United Nations to be more effective as a venue for collective action against terror and proliferation, climate change and genocide, poverty and disease.

Finally, I am convinced that General James Jones is uniquely suited to be a strong and skilled national security adviser. Generations of Joneses have served heroically on the battlefield from the breech beaches of Tarawa in World War II to Fox Trot Ridge in Vietnam.

Jim’s Silver Star is a proud part of that legacy. He will bring to the job the duel experience of serving in uniform and as a diplomat. He has commanded a platoon in battle, served as supreme allied commander in a time of war, and worked on behalf of peace in the Middle East.

Jim is focused on the threats of today and the future. He understands the connection between energy and natural security and has worked on the front lines of global instability from Kosovo to Northern Iraq to Afghanistan. He will advise me and work effectively to integrate our efforts across the government so that we are effectively using all elements of American power to defeat unconventional threats and promote our values.

I am confident that this team is what we need to make a new beginning for American national security. This morning, we met to discuss the situation in Mumbai and some of the challenges that we face in the months and years ahead.

In the coming weeks, I will be in close contact with these advisers who will be working with their counterparts in the Bush administration to make sure that we are ready to hit the ground running on January 20th. Given the range of threats that we face and the vulnerability that can be a part of every presidential transition, I hope that we can proceed swiftly for those natural security officials who demand confirmation.

We move forward with the humility that comes with knowing that there are brave men and women protecting us on our frontlines, diplomats and intelligence officers in dangerous corners of the world, troops serving their second, third, or fourth tours, FBI agents in the field, cops on the beat, prosecutors in our courts, and cargo inspectors at our ports.

These selfless Americans whose name are unknown to most of us, will form the backbone of our effort. If we serve as well as they are serving, we will protect our country and promote our values.

And as we move forward with respect for American’s tradition of a bipartisan national security policy and a commitment to national unity, we have to recall that when it comes to keeping our nation and our people safe, we are not Republicans or Democrats. We are Americans. There’s no monopoly of power of wisdom in either party.

Together, as one nation, as one people, we can shape our times instead of being shaped by them. Together, we will meet the challenges of the 21st century not with fear but with hope.

Now, before I take questions, I’d like to invite my team to say a few words. And I’m going to start with my dear friend, Hillary Clinton.

CLINTON: Mr. President-elect, thank you for this honor. If confirmed, I will give this assignment, your administration, and our country my all. I also want to thank my fellow New Yorkers who have, for eight years, given me the joy of a job I love with the opportunity to work on issues I care about deeply in a state that I cherish.

And you’ve also helped prepare me well for this new role. After all, New Yorkers aren’t afraid to speak their minds and do so in every language. Leaving the Senate is very difficult for me. But during the last few weeks, I thought often of our troops serving bravely under difficult circumstances in Iraq, Afghanistan, and elsewhere.

I thought of those other Americans in our foreign and civil services working hard to promote and protect our interests around the world. And I thought of the daunting tasks ahead for our country. An economy that is reeling, a climate that is warming. And as we saw with the horrible events in Mumbai, threats that are relentless.

The fate of our nation and the future of our children will be forged in the crucible of these global challenges. America cannot solve these crises without the world, and the world cannot solve them without America.

By electing Barack Obama our next president, the American people have demanded not just a new direction at home but a new effort to renew America’s standing in the world as a force for positive change. We know our security, our values, and our interests cannot be protected and advanced by force alone nor, indeed, by Americans.

We must pursue vigorous diplomacy using all the tools we can muster to build a future with more partners and fewer adversaries, more opportunities and fewer dangers for all who seek freedom, peace, and prosperity.

America is a place founded on the idea that everyone should have the right to live up to his or her God-given potential. And it is that same ideal that must guide America’s purpose in the world today. And while we are determined to defend our freedoms and liberties at all costs, we also reach out to the world again seeking common cause and higher ground.

And so I believe the best way to continue serving my country is to join President-elect Obama, Vice President-elect Biden, the leaders here, and the dedicated public servants of the State Department on behalf of our nation at this defining moment. President Kennedy one said that engaging the world to meet the threats we face was the greatest adventure of our century.

Well, Mr. President-elect, I am proud to join you on what will be a difficult and exciting adventure in this new century. And may God bless you and all who serve with you and our great country.

GATES: I am deeply honored that the president-elect has asked me to continue as secretary of defense. Mindful that we are engaged in two wars and face other serious challenges at home and around the world, and with a profound sense of personal responsibility to and for our men and women in uniform and their families, I must do my duty as they do theirs. How could I do otherwise?

Serving in this position for nearly two years, and especially the opportunity to lead our brave and dedicated soldiers, sailor, airmen, Marines, and defense civilians has been the most gratifying experience of my life. I am honored to continue to serve them and our country. And I will be honored to serve President-elect Obama.

HOLDER: Thank you, President-elect Obama, for the honor that you have bestowed upon me. I look forward to working with you and the members of this national security team assembled here.

The Department of Justice plays a unique role on this team. It is incumbent those of us who lead the department to ensure not only that the nation is safe but also that our laws and traditions are respected. There is not a tangent (ph) between those two. We can and we must ensure that the American people remain secure and that the great constitutional guarantees that define us as a nation are truly valued.

For example, working with Republicans and Democrats in Congress, should I be confirmed, we look forward to actually structuring policies that are both protective and consistent with who we are as a nation.

HOLDER: I also look forward to working with the men and women of the Department of Justice to revitalize the department’s efforts in those areas where the department that’s unique capabilities and responsibilities in keeping our people safe and ensuring fairness and in protecting our environment.

This president-elect and the team you see before you are prepared to meet the challenges that we will confront. From my experience at the Department of Justice, I know that we cannot be successful if we act alone. We must never forget that in many ways those in state and local law enforcement are our first line of detection and protection against those from foreign shores who would do us harm.

We will need to interact with our state and local partners in new innovative ways to help them solve the other issues that they confront on a daily basis. National security concerns are not defined only by the challenges created by terrorists abroad but also by criminals in our midst, whether they be criminals located on the street or in a board room.

We must forge new ties and reestablish old bonds with our state and local partners. There is much that needs to be done in this new century. I am confident that working with our president-elect, the people on this stage and the departments that they represent, those of both parties who I know and respect on Capitol Hill, we can keep our nation safe, strong, and respected.

It is now my pleasure to introduce Janet Napolitano , a great governor and an old friend.

NAPOLITANO: Thank you, Eric.

President-elect Obama, I am honored by your confidence in me and your support. Your message of change has resonated with the American people as has the clarity and the confidence of our vision of a United States that is safe, secure, and effective in the world and at home.

The team you have assembled faces the challenge of protecting our homeland with constant vigilance and relentless work to prevent terrorist attacks. It also will plan carefully and thorough so that our domestic response to all hazards is fast, sound, levelheaded, and effective. Americans deserve no less.

To achieve this high level of performance, it will be my job and the job of this team to hold ourselves and our agencies accountable, to coordinate fully across the spectrum of government agencies and to ensure that we work hand in hand with state and local governments to share information, secure our borders, and keep our country safe.

We are a nation that will be proud, prepared, and resilient. Thank you for the opportunity to serve. And I would be remiss if I did not also thank the wonderful people of Arizona. Like Hillary, it is difficult to leave one job for another, but one must go where one can best serve.

It’s now my privilege to introduce to you the nominee to be it the ambassador of the United Nations, Susan Rice.

RICE: Mr. President-elect, Mr. Vice President-elect, I am deeply honored and grateful for the opportunity to serve you and our great country as the U.S. permanent representative to the United Nations. I look forward to working with this outstanding bipartisan national security team to implement your visionary agenda, to strengthen our security, and renew American’s leadership in the world.

I want to take this opportunity to thank my parents who taught me that no dream is too bold to embrace. My husband and our children, Jake and Maris (ph), for their patience, love, and sacrifice.

With your election, Mr. President-elect, the American people have signaled to the world that our nation is on the path to change. Now, we must fulfill that promise by joining with others to meet the challenges and seize the opportunities of the 21st century to prevent conflict, to promote peace, combat terrorism, present the spread and use of nuclear weapons, tackle climate change, end genocide, fight poverty and disease.

All of these goals are vital to America’s security but none can be accomplished by America alone. To enhance our common security, we must invest in our common humanity. And to do so, we need capable partners and far more effective international institutions.

The United Nations was, in major part, America’s creation.

RICE: Mr. President-elect, I share your commitment to rededicate ourselves to the organization and its mission. If confirmed, as U.N. ambassador, I will work constructively within the organization to help strengthen its capacities and achieve needed reforms.

I can think of no more important time to represent the United States at the United Nations. Mr. President-elect, thank you for the confidence you’ve placed in me and for the opportunity to serve in this vital mission.

It’s now my pleasure to introduce General James Jones.

JONES: Mr. President-elect, Mr. Vice President-elect, members of this tremendous team assembled this morning, I’m deeply humbled to have been asked by the president-elect to serve as national security adviser especially during the challenging times we currently face.

And Mr. President-elect, I deeply appreciate your mentions my family’s contribution to our national security since 1939.

As has been previously mentioned, national security in the 21st century comprising a portfolio which includes all elements of our national power and influence working in coordination and harmony towards the desired goal of keeping our nation safe, helping to make our world a better place, and providing opportunity to live in peace and security for the generations to follow.

I am deeply humbled and deeply appreciative of this great opportunity, and I am very proud now to introduce a man who will play a key role in making this come to pass, the vice president-elect, Joe Biden.

BIDEN: Well, Mr. President, you’ve assembled quite a team. And I hope and believe that the American people will come to feel as I do that we brought together one of the most talented national security teams ever assembled. A team prepared to meet the serious challenges we face today and the emerging threats that will confront us tomorrow.

I have worked with and admired each of the members of the team some as far as back in days, Jim, when you were a Marine liaison to the United States Senate. And so we have a — I have a long relationship, as the president does, and I do with each of these folks.

And each has a clear understanding of the forces that are shaping this new century and the lives of our fellow Americans. As was mentioned earlier, the wars in Iraq and Afghanistan, the emergence of China, India, Russia, Brazil, and the unifying Europe as major powers, the spread of lethal weapons to dangerous countries as well as dangerous groups, the shortage of — and scarcity of energy, water, and food, the impact of climate change, economic dislocations, persistent poverty. The technological revolution that sends people, ideas, and money around the planet as ever faster speeds. And, as was already mentioned, as we witnessed again last week with the terrible events in the India, the challenge to democratic nation states from radical ideologies.

That’s just a short list of the forces that are shaping the 21st century. And it’s been implied by all the comments thus far, no one country can control these forces. But more than any other country in the world, we have the ability to affect them if we use the totality of our strength.

And bringing together Senator Clinton, Secretary Gates, Eric Holder, Governor Napolitano, Susan Rice, and General Jones, the president-elect has assembled a national security team that is poised, in my view, to recapture the totality of America’s strength. Each member of this team shares the goals and the principles that the president-elect and I have attempted to advance.

Each member shares our conviction that strength and wisdom must go hand in hand. Each member believes, as we do, that America’s security is not a partisan issue. Witness the team. Each member understands that America’s military might and economic strength must married to the power of our ideas and our ideals if we are to deal effectively with dealing with the forces of change, some of which I’ve mentioned, and if we’re going keep this country we love so dearly prosperous and free.

These are extraordinary times. That’s not in a flight of fancy or exaggeration. These are extraordinary times. We face extraordinary challenges.

BIDEN: But I am, as the president-elect is, optimistic, absolutely optimistic that this team, with the president-elect at our helm, will see to it that America leads not only by the example of our power but by the power of our example.

And now, President-elect Obama is prepared to take your questions. And, again, Mr. President-elect, congratulations on assembling what I believe will be a first-class team to lead us into this century.

Thank you.

OBAMA: OK. Let’s start with Liz.

QUESTION: (Inaudible)?

OBAMA: Well, first of all, I think it’s important to reiterate that our condolences, our thoughts, and our prayers go out to the people of India, the families that have been affected, and, obviously, we’re heartbroken by the deaths of the six Americans that were caught up in this tragedy.

I’ve spoken to Prime Minister Singh and expressed these concerns to him. An investigation is taking place. I was briefed by Secretary Rice throughout the weekend. She’s on her way to the region. We’ve sent FBI to help on the investigation.

And this is one of those time where I have to reiterate there’s one president at a time. We’re going to be engaged in some very delicate diplomacy in the next several days and weeks. So I think it would be inappropriate for me to comment.

But what I can say unequivocally is that both myself and the team that stands beside me are absolutely committed to eliminating the threat of terrorism. And that is true wherever it is found. We cannot have — we cannot tolerate a world in which innocents are being killed by extremists based on twisted ideologies.

And we’re going to have to bring the full force of our power, not only military but also diplomatic, economic, and political, to deal with those threats not only to keep America safe but also to ensure that peace and prosperity with exist around the world.

So I will be monitoring the situation closely. Thus far, I think the administration has done what’s needed in trying to get the details of the situation. And my expectation is that President Zardari of Pakistan, who has already said that he will fully cooperate with the investigation, will follow through with that commitment.

All right. Karen?

QUESTION: Thank you, Mr. President. You’ve selected a number of high profile people for your national secure team. How can you ensure that the staff that you are assembling is going to be a smoothly- functioning team of rivals and not a clash of rivals?

OBAMA: Well, I think you heard Joe mention the fact that many of the people who are standing beside me are people who have worked together before, who have the utmost respect for each other. These are outstanding public servants and outstanding in their various fields of endeavor.

They would not have agreed to join my administration, and I would not have asked them to be part of this administration unless we shared a core vision of what’s needed to keep the American people safe and to assure prosperity here at home and peace abroad.

I think all of us here share the belief that we have to maintain the strongest military on the planet, that we have to support our troops and make sure that they are properly trained, properly equipped, that they are provided with a mission that allows them to succeed. All of us here also agree that the strength of our military has to be combined with the wisdom and force of our diplomacy and that we are going to be committed to rebuilding and strengthening alliances around the world to advance American interests and American security.

And so in discussions with this entire team, what I am excited about is a consensus not only among those of us standing here today, but I think cross a broad section of the American people, that now is the time for us to regain American leadership in all its dimensions. And I am very confident that each of these individuals are not going to be leaving the outstanding work that they are currently doing if they weren’t convinced that they could work as an effective team.

One last point I will make. I assembled this team because I’m a strong believer in strong personalities and strong opinions. I think that’s how the best decisions are made. One of the dangers in the White House, based on my reading of history, is that you get wrapped up in group think and everybody agrees with everything and there’s no discussion and there are no dissenting views. So I’m going to be welcoming a vigorous debate inside the White House.

But understand I will be setting policy as president. I will be responsible for the vision that this team carries out, and I expect them to implement that vision once decisions are made. So as Harry Truman said, the buck will stop with me. And nobody who’s standing here, I think, would have agreed to join this administration unless they had confidence that, in fact, that vision was one that would help secure the American people and our interests.

Jake?

QUESTION: Thank you, Mr. President-elect. During the campaign, you said that you thought the U.S. had a right to attack high-value terrorist targets in Pakistan if given actionable intelligence with or without the Pakistani government’s permission. Two questions on that.

One, do you think India has that same right?

And, two, regarding what Karen just said, some people up there on the stage took issue with your saying that. They have strong opinions about issues ranging from Pakistan to the surge. And while they’re all committed to have a successful United States, what private assurances have they given you that they will be able to carry out your vision even when they strongly disagree with that vision as some of them have been able to do in the past?

Thank you, sir.

OBAMA: I think that sovereign nations, obviously, have a right to protect themselves. Beyond that, I don’t want to comment on the specific situation that’s taking place in South Asia right now. I think it is important for us to let the investigators do their jobs and make a determination in terms of who was responsible for carrying out these heinous acts.

I can tell you that my administration will remain steadfast in support of India’s efforts to catch the perpetrators of this terrible act and bring them to justice. And I expect that the world community will feel the same way.

Now, in terms of my team and carrying out my vision and my policies, as I’ve said, during campaigns or during the course of election season, differences get magnified. I did not ask for assurances from these individuals that they would agree with me at all times. I think they understand and would not be joining this team unless they understood and were prepared to carry out the decisions that have been made by me after full discussion.

And, you know, most of the people who are standing here are people who I’ve worked with, and on the broad core vision of where America needs to go, we are in almost complete agreement. There are going to be differences in tactics and different assessments and judgments made. That’s what I expect. That’s what I welcome. That’s why I asked them to join the team.

Peter Baker?

QUESTION: Thank you, Mr. President-elect.

You’ve talked about the importance just now of having different voices and robust debate within your administration. But, again, going back to the campaign, you were asked and talked about the qualifications of the — your now, your nominee for secretary of state. And you belittled her travels around the word, equating it to having teas with foreign leaders. And your new White House council said that her resume was grossly exaggerated when it came to foreign policy. I’m wondering whether you can talk about the evolution of your views of her credentials since the spring.

OBAMA: Well, I mean, I think — this is fun for the press to try to stir up whatever quotes were generated during the course of the campaign. No, I understand. And you’re having fun.

But the — and there’s nothing wrong with that. I’m not — I’m not faulting it. But, look, I think if you look at the statements that Hillary Clinton and I have made outside of the heat of a campaign, we share a view that America has to be safe and secure. And in order to do that…

OBAMA: … the statements that Hillary Clinton and I have made outside of the heat of a campaign, we share a view that America has to be safe and secure. And in order to do that we have to combine military power with strength and diplomacy. And we have to build and forge stronger alliances around the world so that we’re not carrying the burdens and these challenges by ourselves.

I believe that there is no more effective advocate than Hillary Clinton for that well-rounded view of how we advance American interests. She has served on the Armed Services Committee in the Senate. She’s knows world leaders around the world. I have it extensive discussions with her both pre-election and post-election about the strategic opportunities that exist out there to strengthen American’s posture in the world.

And I think she is going to be an outstanding secretary of state. And if I didn’t believe that, I wouldn’t have offered her the job. And if she didn’t believe that I was equipped to lead this nation in such a difficult time, she would not have accepted.

John McCormack. Where’s John?

QUESTION: Thank you, Mr. President-elect.

You’re known as a pretty good storyteller. Can you tell us a little bit of a story about how Senator Clinton was selected for this job? Was there a seminal moment? How was the offered extended? Can you give us some detail on how it was accepted and kind of the negotiation process that was involved here?

And, also, does Secretary Gates meet the requirement for a Republican on the Cabinet, or should we be looking for others as well?

OBAMA: Well, I mean, I didn’t — I didn’t — I didn’t check his voter registration. Secretary Gates, meets the qualification of being an outstanding current secretary of defense and somebody who is doing everything he can every single day to make sure that our troops are properly equipped and trained and organized in order to succeed at their missions and that their families are cared for.

So I have complete confidence in Secretary Gates being able to carry out his tasks. And I think the point here is that I didn’t going around checking people’s political registration. What I was most concerned with was whether or not they can serve the interests of the American people.

With respect to Senator and soon-to-be, Secretary of State Clinton, it was not a light bulb moment. I have always admired Senator Clinton. We have worked together extensively in the Senate. I have always believed that she is tough and smart and disciplined and that she shares my core values and the core values of the American people.

And so I was always interested after the primary was over in finding ways in which we could collaborate. After the election was over and I began to think about my team, it occurred to me that she could potentially be an outstanding secretary of state. I extended her the offer and she accepted.

I know that’s not as juicy a story as you were hoping for, but that’s all you’re going to get, John. Thanks.

Where’s Dean? There you are. Hey, Dean.

QUESTION: Sir, do you still intend to withdraw all U.S. forces from Iraq in 16 months after inauguration? And did you discuss that — the possibility of that — with Secretary Gates, before selecting him?

OBAMA: Well, keep in mind what I said during the campaign. And you were there most of the time.

I said that I would remove our combat troops from Iraq in 16 months with the understanding that it might be necessary, likely to be necessary, to maintain a residual force to provide potential training, logistical support to protect our civilians in Iraq.

The SOFA that has been now passed by the Iraqi legislature points us in the right direction. It indicates we are now on a glide path to reduce our forces in Iraq. I will be meeting be not only Secretary Gates but the joint chiefs of staff and commanders on the ground to make a determination as to how we move that pace — how we proceed in that withdrawal process.

I believe that 16 months is the right timeframe. But as I have said consistently, I will listen to the recommendations of my commanders. And my number one priority is making sure that our troops remain safe in this transition phase and that the Iraqi people are well served by a government that is taking on increased responsibility for its own security.

It is a sovereign nation. What this signals is a transition period in which our mission will be changing. We will have to remain vigilant in making sure that any terrorist elements that remain in Iraq do not become strengthened as a consequence of our drawdown. But it’s also critical that we recognize that the situation in Afghanistan has been worsening. The situation in South Asia, as a whole, and the safe havens for terrorist that have been established there represent the single most important threat against the American people.

And we’re going to have to mobilize our resources and focus on attention on defeating Al Qaeda, bin Laden, and any other extremist groups that intend to target American citizens.

Thank you very much, everybody.

END

SCHIEFFER: …the president, if all goes as expected, at 10:50 Eastern time tomorrow will
announce his new national security team, to be headed by Hillary Rodham Clinton as secretary of
state.

Mr. WOODWARD: She never goes away, she and her husband. It’s an amazing national security team that Obama appears to have selected. It’s kind of like “Goldilocks and the Three Bears.”

You’ve got too cool, which might be–or at least appropriately cool, General Jones as the national security adviser; Gates is kind of just right, in the middle; and Hillary Clinton, hot. This is going to be a whole new center of gravity for the news media, for the whole world. My assessment without having any knowledge, really, is that the economists and the economic team around Obama convinced him that the economic crisis is so deep and going to require to much time, go ahead and give Hillary and Bill the world.

Yikes.  I’m not sure that’s what I voted for, Bob.

from Reuters

 Drudge’s Headline Brings Pause for Thought

A story in the International Herald Tribune earned the following headline on Drudge Report:

Now, if you read the entire story, you find that most of the piece is about President-elect Barack Obama’s and Sen. Hillary Clinton’s relationship and how it mellowed after their primary fight.  Drudge, though has shown an uncanny ability to pull the bothersome thread from the garment in the past, many times before the rest of the media catches up.  When I saw this headline, I thought, “Oh no, shadow government, Barack’s been too magnanimous and he’s going to pay for it.”

I read the story and Drudge’s headline – and therefore judgement on what the real story is – comes down to this:

By this past Thursday, when Obama reassured Clinton that she would have direct access to him and could select her own staff as secretary of state, the wooing was complete.

In the context of the reporting, it sounds pretty innocuous.  Drudge doesn’t think so, he thinks this is the story.  We won’t know if he’s right for months. But another nugget buried further in the piece is pure Clinton politics and may support why some remain worried about Hillary Clinton as one of Barack’s closest associates:

Clinton, it should be said, was herself diligent in advertising how hard she was working for the man who defeated her. When announcing her appearances, her press office included tallies of how many events she had held for Obama, and in how many states. At some rallies, organizers would distribute “Hillary Sent Me” buttons, as if Clinton was being magnanimous by “sending” her followers to vote for Obama.

You see, Bill and Hillary Clinton have never been ones for humility.  Part of the power and appeal of Barack Obama is that he is cabable of humility.  The mere fact that he surrounds himself with strong intellects and encourages robust policy debate and divergent opinions in his decision-making process is testament to this.  At the end of the day, Obama is still a man who ran for president and won and that qualifies his ego as one of the larger among us.  The reason why he appears to be not cut from the same political cloth as so many others with presidential-sized egos is that he is even more in tune to what’s going on around him.  He is self-aware and world-aware in a way that tempers the ego.

Can the same be said for either Hillary or Bill Clinton? 

I don’t want to ignore the contributions either the former president or the current senator have made to our country.  I will be only cautiously optimistic for now on whether Hillary Clinton as Secretary of State will work for America and the world.

Along with the Clintons’ contributions came colossal drama.  Conditions are too critical and the stakes here and abroad are too high in present times for drama.  I hope the rest of the ‘No Drama Obama’ team has considered this.

Here’s what we know and what we think we know:

• White House CoS – Rahm Emanuel – Clinton Alumni
• Secretary of State – Hillary Clinton – Former First Lady
• Secretary of HHS – Tom Daschle – Former Senate Leader from Clinton Era
• Secretary of Homeland Security – Janet Napolitano – Actual Newcomer
• Secretary of the Treasury – Larry Summers – Clinton Alumni
• Attorney General – Eric Holder – Clinton Alumni

Now some are looking at this list and wondering where the change is coming for the top cabinet spots.  Here’s where the benefit of the doubt has to come in.

If you voted for Barack Obama and believe that he means what he says and that he’ll work toward a different Washington, one more responsive to the needs of regular folks and less so to the special interests – remember that he’s not even in office yet. 

When these prospective Cabinet members worked for or in the Clinton administration it was in the heady days when the Democratic Party first fell in love with Wall Street and its money.  They were smitten.  These smart people were tired of ceding the “business” argument to the Republican Party.  Except for perhaps Robert Reich and James Carville every Democrat in Washington during the nineties bent over backwards to deregulate and tear down firewalls because Goldman Sachs and their favorite Republican, Alan Greenspan, said it was good for business.

Here’s what’s different: Obama.  Despite all the crap that John McCain and the Republican Party threw at Barack Obama during the campaign, he stayed on message.  That’s integrity.  That’s steadiness and steel.  I believe the guy when he says things are going to change.

As for the retreads – other things have changed.  The Democratic Party is still heavily funded by the investment class and its economic brainpower is still a little too tied to Wall Street for my comfort, but these people aren’t stupid.  They got caught up in the same high flying economy so many did during the nineties.  The difference was they were in power and we can trace some of today’s financial crisis to the policies they pursued back then.  We can only hope they’ve learned their lesson and the great talent of people like Rahm Emanuel and Tom Daschle will be fully aligned with Barack Obama’s world view and public policy.

One thing I do wish they’d try again from the nineties.  Remember when they deregulated cable TV?  I’m still waiting for the “competition” to lower my cable bills.

(Narration) Steve Kroft:Since Barack Obama was elected the 44th president of the United States 12 days ago, he has largely remained out of sight, getting high-level government briefings and conferring with his transition team. But he surfaced on Friday afternoon in Chicago, alongside his wife Michelle to give 60 Minutes his first post-election interview.

It covers a wide range of subjects including the economy, the ailing automobile industry, the government’s $700 billion bailout program, their visit to the White House, the emotions of election night and the quest for a family dog. You’ll hear all of it. But we begin with the president-elect and his thoughts about the new job.

Steve Kroft: So here we are.

President-elect Barack Obama: Here we are.

Kroft: How’s your life changed in the last ten days?

Mr. Obama: Well, I tell you what, there seem to be more people hovering around me. That’s for sure. And, on the other hand, I’m sleeping in my own bed over the last ten days, which is quite a treat. Michelle always wakes up earlier than I do. So listen to her roaming around and having the girls come in and, you know, jump in your bed. It’s a great feeling. Yeah.

Kroft: Has this been easier than the campaign trail?

Mr. Obama: Well, it’s different. I think that during the campaign it is just a constant frenetic, forward momentum. Here, I’m stationary. But the issues come to you. And we’ve got a lot of work to do. We’ve got a lot of problems, a lot of big challenges.

Kroft: Have there been moments when you’ve said, ‘What did I get myself into?’

Mr. Obama: Surprisingly enough, I feel right now that I’m doing what I should be doing. That gives me a certain sense of calm. I will say that the challenges that we’re confronting are enormous. And they’re multiple. And so there are times during the course of a given a day where you think, ‘Where do I start?’

Kroft: What have you been concentrating on this week?

Mr. Obama: Couple of things. Number one, I think it’s important to get a national security team in place because transition periods are potentially times of vulnerability to a terrorist attack. We wanna make sure that there is as seamless a transition on national security as possible. Obviously the economy. Talking to top economic advisors about how we’re gonna create jobs, how we get the economy back on track and what do we do in terms of some long-term issues like energy and healthcare. And how do we sequence those things in a way that we can actually get things through Congress?

Kroft: Are you in sync with Secretary Paulson in terms of how the $700 billion is being used?

Mr. Obama: Well, look, Hank Paulson has worked tirelessly under some very difficult circumstances. We’ve got an unprecedented crisis, or at least something that we have not seen since the Great Depression. And I think Hank would be the first one to acknowledge that probably not everything that’s been done has worked the way he had hoped it would work. But I’m less interested in looking backwards than I am in looking forwards.

Kroft: The government has spent almost $300 billion out of the TARP program.

Mr. Obama: Right.

Kroft: Money that was set aside to help the financial industry. And nothing much has changed if you look at it. Nothing much has changed. It’s $300 billion. Why is that?

Mr. Obama: I think the part of the way to think about it is things could be worse. I mean, we could have seen a lot more bank failures over the last several months. We could have seen an even more rapid deterioration of the economy, even a bigger drop in the stock market. So part of what we have to measure against is what didn’t happen and not just what has happened.

Having said that, there’s no doubt that we have not been able yet to reset the confidence in the financial markets and in the consumer markets and among businesses that allow the economy to move forward in a strong way. And my job as president is gonna be to make sure that we restore that confidence.

Kroft: Once you become president, are there things that you’ll change?

Mr. Obama: Well, you know I think we still have to see how this thing unfolds over the next couple of months. One area that I’m concerned about, and I’ve said this publicly, is we have not focused on foreclosures and what’s happening to homeowners as much as I would like. We have the tools to do it. We’ve gotta set up a negotiation between banks and borrowers so that people can stay in their homes. That is gonna have an impact on the economy as a whole. And, you know, one thing I’m determined is that if we don’t have a clear focused program for homeowners by the time I take office, we will after I take office.

Kroft: Are you being consulted by Secretary Paulson?
Is he telling you what’s going on?

Mr. Obama: You know what we’ve done is we’ve assigned somebody on my transition team who interacts with him on a daily basis. And, you know, we are getting the information that’s required to and we’re making suggestions in some circumstances about how we think they might approach some of these problems.

Kroft: Are they listening?

Mr. Obama: Well, you know, that we’ll find out.

Kroft: People are comparing this to 1932.

Mr. Obama: Right.

Kroft:Is that a valid comparison, do you think?

Mr. Obama: Well, keep in mind that 1932, 1933 the unemployment rate was 25 percent, inching up to 30 percent. You had a third of the country that was ill housed, ill clothed, unemployed. We’re not going through something comparable to that. But I would say that this is as bad as we’ve seen since then. And if we don’t take some significant steps then it could get worse.

Kroft: You have a situation right now where you have General Motors, which is in dire straits.

Mr. Obama: Yeah.

Kroft: May run out of cash by the end of the year, maybe by the end of certainly, if we believe what we read in the papers, by the time you take office.

Mr. Obama: Yeah. Well, let’s see how this thing plays itself out. For the auto industry to completely collapse would be a disaster in this kind of environment, not just for individual families but the repercussions across the economy would be dire. So it’s my belief that we need to provide assistance to the auto industry. But I think that it can’t be a blank check.

So my hope is that over the course of the next week, between the White House and Congress, the discussions are shaped around providing assistance but making sure that that assistance is conditioned on labor, management, suppliers, lenders, all the stakeholders coming together with a plan what does a sustainable U.S. auto industry look like? So that we are creating a bridge loan to somewhere as opposed to a bridge loan to nowhere. And that’s, I think, what you haven’t yet seen. That’s something that I think we’re gonna have to come up with.

Kroft: Are there a lot of people that think that the country would probably be better off and General Motors might be better off if it was allowed to go into bankruptcy?

Mr. Obama: Well, you know, under normal circumstances that might be the case in the sense that you’d go to a restructuring like the airlines had to do in some cases. And then they come out and they’re still a viable operation. And they’re operating even during the course of bankruptcy. In this situation, you could see the spigot completely shut off so that it would not potentially permit GM to get back on its feet. And I think that what we have to do is to recognize that these are extraordinary circumstances. Banks aren’t lending as it is. They’re not even lending to businesses that are doing well, much less businesses that are doing poorly. And in that circumstance, the usual options may not be available.

Kroft: When the price of oil was at $147 a barrel, there were a lot of spirited and profitable discussions that were held on energy independence. Now you’ve got the price of oil under $60.

Mr. Obama: Right.

Kroft: Does doing something about energy is it less important now than…

<Mr. Obama: It’s more important. It may be a little harder politically, but it’s more important.

Kroft: Why?

Mr. Obama: Well, because this has been our pattern. We go from shock to trance. You know, oil prices go up, gas prices at the pump go up, everybody goes into a flurry of activity. And then the prices go back down and suddenly we act like it’s not important, and we start, you know filling up our SUVs again.

And, as a consequence, we never make any progress. It’s part of the addiction, all right. That has to be broken. Now is the time to break it.

Kroft: Where is all the money going to come from to do all of these things? And is there a point where just going to the Treasury Department and printing more of it ceases to be an option?

Mr. Obama: Well, look, I think what’s interesting about the time that we’re in right now is that you actually have a consensus among conservative Republican-leaning economists and liberal left-leaning economists. And the consensus is this: that we have to do whatever it takes to get this economy moving again, that we’re gonna have to spend money now to stimulate the economy.

And that we shouldn’t worry about the deficit next year or even the year after. That short term, the most important thing is that we avoid a deepening recession.

Kroft: How high a priority are you placing on re-regulation of the financial markets?

Mr. Obama: I think it’s a top priority. I think that we have to restore a sense of trust, transparency, openness in our financial system. And keep in mind that the deregulation process, it wasn’t just one party. I think there’s a lot of blame to spread around.

But, hopefully, everybody’s learned their lesson. And the answer is not heavy-handed regulations that crush the entrepreneurial spirit and risk taking of American capitalism. That’s what’s made our economy great. But it is to restore a sense of balance.

His first legislative goal will be to get Congress to pass an economic stimulus package that he hopes will create jobs and put money in the pockets of ordinary citizens, construction programs to shore up the nation’s creaky infrastructure, a tax cut for the middle class and his first initiatives on health care. But some things he can do with the stroke of a pen.

Kroft: There are a number of different things that you could do early pertaining to executive orders. One of them is to shutdown Guantanamo Bay. Another is to change interrogation methods that are used by U.S. troops. Are those things that you plan to take early action on?

Mr. Obama: Yes. I have said repeatedly that I intend to close Guantanamo, and I will follow through on that. I have said repeatedly that America doesn’t torture. And I’m gonna make sure that we don’t torture. Those are part and parcel of an effort to regain America’s moral stature in the world.

Kroft: Can you give us some sense of when you might start redeployments out of Iraq?

Mr. Obama: Well, I’ve said during the campaign, and I’ve stuck to this commitment, that as soon as I take office, I will call in the Joint Chiefs of Staff, my national security apparatus, and we will start executing a plan that draws down our troops. Particularly in light of the problems that we’re having in Afghanistan, which has continued to worsen. We’ve got to shore up those efforts.

Kroft: Where does capturing or killing Osama bin Laden fall?

Mr. Obama: I think it is a top priority for us to stamp out al Qaeda once and for all. And I think capturing or killing bin Laden is a critical aspect of stamping out al Qaeda. He is not just a symbol, he’s also the operational leader of an organization that is planning attacks against US targets.

Kroft: How close are you to settling on a cabinet?

Mr. Obama: Well, I think that I’ve got a pretty good idea of what I’d like to see. But it takes some time to work those things through.

Kroft: When are you gonna make your first announcement?

Mr. Obama: Soon.

Kroft: Next week?

Mr. Obama: Soon.

Kroft: You met with Senator Clinton this week.

Mr. Obama: I did.

Kroft: Is she on the short list for a cabinet position?

Mr. Obama: You know, she is somebody who I needed advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you’re not getting anything out of me Steve.

Kroft: Will there be Republicans in the cabinet?

Mr. Obama: Yes.

Kroft: More than one?

Mr. Obama: You’re not getting more out of me.

Kroft: You’ve spoken to some former presidents.

Mr. Obama: I have.

Kroft: Any advice, any good advice they gave you?

Mr. Obama: You know, they were all incredibly gracious. But I think that all of them recognized that there’s a certain loneliness to the job. That, you know, you’ll get advice, and you’ll get counsel. Ultimately, you’re the person who’s gonna be making decisions.

And I think that even now, you know, I – you can already feel that fact.

Kroft: What are you reading right now? I mean, have…

Mr. Obama: A lot of briefing papers.

Kroft: A lot of briefing papers?

Mr. Obama: Yeah. I’ve been spending a lot of time reading Lincoln. There is a wisdom there and a humility about his approach to government, even before he was president, that I just find very helpful.

Kroft: Put a lot of his political enemies in his cabinet.

Mr. Obama: He did.

Kroft: Is that something you’re considering?

Mr. Obama: Well, I tell you what, I find him a very wise man.

Kroft: Have you been reading anything about the Depression? Anything about FDR?

Mr. Obama: You know, I have actually. There’s a new book out about FDR’s first 100 days and what you see in FDR that I hope my team can– emulate, is not always getting it right, but projecting a sense of confidence, and a willingness to try things. And experiment in order to get people working again.

And I think that’s what the American people expect. You know, they’re not expecting miracles. I think if you talk to the average person right now that they would say, ‘Well, look, you know well, we’re having a tough time right now. We’ve had tough times before.’ ‘And you know, we don’t expect a new president can snap his fingers and suddenly everything is gonna be okay. But what we do expect is that the guy is gonna be straight with us. We do expect that he’s gonna be working really hard for us.’

‘We do expect that he’s gonna be thinking about ordinary Americans and not just the wealthy and the powerful. And we do expect that. if something doesn’t work that they’re gonna try something else until they find something that does.’ And, you know, that’s the kind of common sense approach that I want to take when I take office.

Kroft: There’s been talk on Capitol Hill and a number of Democratic congressmen have proposed programs that are part of sort of a new New Deal. The possibility of reviving agencies like the Home Ownership Loan Corporation.

Mr. Obama: Two points I’d make on this. Number one, although there are some parallels to the problems that we’re seeing now and what we say back in the ’30s, no period is exactly the same. For us to simply recreate what existed back in the ’30s in the 21st century, I think would be missing the boat. We’ve gotta come up with solutions that are true to our times and true to this moment. And that’s gonna be our job. I think the basic principle that government has a role to play in kick starting an economy that has ground to a halt is sound.

I think our basic principle that this is a free market system and that that has worked for us, that it creates innovation and risk taking, I think that’s a principle that we’ve gotta hold to as well. But what I don’t wanna do is get bottled up in a lot of ideology and is this conservative or liberal. My interest is finding something that works.

And whether it’s coming from FDR or it’s coming from Ronald Reagan, if the idea is right for the times then we’re gonna apply it. And things that don’t work we’re gonna get rid of.

Kroft: Are you gonna make a lot of speeches? Are you gonna talk a lot to the American people on television and radio?

Mr. Obama: You know, I’m not sure that the American people are looking for a lot of speeches. I think what they’re looking for is action. But one of the things that I do think is important is to be able to explain to the American people what you’re doing, and why you’re doing it. That is something that I think every great president has been able to do. From FDR to Lincoln to John Kennedy to Eisenhower. I mean, I think that they were people who were able to say ‘Here’s the direction we’re going. Here’s why I think it’s important. Here are the possible dangers or challenges. But ultimately, you know, this is gonna lead us to a better America.’ And I want to make sure that I can recreate a bond of trust between the presidency and the public that I think has been lost.

Part II:

(Narration) Steve Kroft: In 66 days, Barack and Michelle Obama and their daughters 10-year-old Malia and 7-year-old Sasha will be the youngest first family to move into the White House since the Kennedys nearly 50 years ago.

While the Obama transition team has been working closely with the Bush administration to ensure an orderly transfer of power, the Obama family has been working hard on a transition of their own that began with an emotional election night in Chicago.

Steve Kroft: When was the first moment that it began to sink in that you were President of the United States? Do you remember?

Mr. Obama: Well, I’m not sure it’s sunk in yet.

Michelle Obama: I guess I’m sort of like him. I’m not sure if it has really sunk in. But I remember, we were watching the returns and, on one of the stations, Barack’s picture came up and it said, ‘President-Elect Barack Obama. ‘ And I looked at him and I said, ‘You are the 44th President of the United States of America. Wow. What a country we live in.’

Mr. Obama: How about that?

Michelle Obama: Yeah.

Mr. Obama: Yeah. Yeah. And then she said ‘Are you gonna take the girls to school in the morning?’

Michelle Obama: I did not. I didn’t say that.

Mr. Obama: It wasn’t at that moment.

Kroft: You made the address in Grant Park. And you brought the kids out. And, at some point you whispered something. Can you remember that?
Michelle Obama: I said, ‘Wow, Look at this.’

Mr. Obama: How ’bout that?

Michelle Obama: I told him, ‘Good job. Well done.’ To walk out there and see hundreds of thousands of hard working folks, because so many people put their energy and their hopes into this campaign. To see the outcome and the emotion, it was a very emotional evening because I think people were ready to take hold of this country and help move it in a different direction and you felt that.

Kroft: The emotion of that night was fueled, in part, by the fact that you were first African-American ever elected. Did you feel that?

Mr. Obama: There’s no doubt that there was a sense of emotion that I could see in people’s faces and in my mother-in-law’s face. You know, I mean, you think about Michelle’s mom, who grew up on the west and south sides of Chicago, who worked so hard to help Michelle get to where she is, her brother to be successful. She was sitting next to me, actually, as we were watching returns. And she’s like my grandmother was, sort of a no-fuss type of person. And suddenly she just kind of reached out and she started holding my hand, you know, kind of squeezing it. And you had this sense of, ‘Well, what’s she thinking?’ For a black woman who grew up in the 50s, you know, in a segregated Chicago, to watch her daughter become first lady of the United States. I think there was that sense across the country. And not unique to African-Americans. I think that.

Michelle Obama: That’s right.

Mr. Obama: I think people felt that it was a sign of the enormous progress that we’ve made in the core decency and generosity of the American people. Which isn’t to say that there were a number of reasons that somebody might not have voted for me. But what was absolutely clear was is that whether people voted for me or against me, that they were making the judgment based on is this guy gonna, you know, lead us well? Is this guy gonna be a good president? And that was my assumption walking in. And that’s how it turned out. And that felt good.

Kroft: What was your conversation like the next morning at the breakfast table with the kids.

Michelle Obama: Yeah, everyone was tired.

Mr. Obama: Because they had been up until midnight.

Michelle Obama: They had been up. But we got up and went to school. But we went to school late. Barack, you slept in. You know, so I think we were just back into the routine. Our hopes are to just to keep the girls moving. It’s like okay , Daddy’s president-elect, okay, we can get to school by 10. And we got to the school and the folks at the school were excited. Some people were cheering as I walked the kids to the class. And I remember Malia saying, ‘That’s embarrassing.’ But you know, it was a pretty normal day for us.

And there have not been many of those. The past two years were spent on the campaign trail and before that Senator Obama split his time between their home in Chicago where Michelle and the girls lived, and a very modest apartment in Washington, which nearly burned down.

Kroft: So, you’ve given up the apartment in Washington that you stayed in?

Mr. Obama: I used to get teased, not just by Michelle, but by my own staff. They’d say, ‘You know, you’re the only senator that has a worse apartment than your 25-year-old staff people.’ Eventually, I think, Secret Service kind of looked at me like, you know, once the building caught fire, and the ceiling caved in, I said…

Michelle Obama: But he moved back in anyway.

Mr. Obama: For a while.

Michelle Obama: After the fire.

Mr. Obama: Shortly.

Kroft: Did you ever stay there?

Michelle Obama: I visited, but I didn’t sleep there.

Mr. Obama: She insisted on a hotel room.

Michelle Obama: I saw it. I saw it long enough to know that I wasn’t gonna stay there.

Mr. Obama: Yeah

Kroft: It is one bedroom? Studio?

Mr. Obama: Yeah, it was sort of a one bedroom. It had kind of the vintage, college dorm, pizza…

Kroft: Community organizer, right?, feel to it.

Michelle Obama: It reminded me of a little better version of the apartment you were in when we first started dating. That was a dump too.

Mr. Obama: Right near Harold’s Chicken Shack.

Michelle Obama:Yeah.

Mr. Obama: Yeah. That’s when I had the car with the-the hole in it.

Michelle Obama: And you could see the sidewalk, because the rust had gone through.

Mr. Obama: The air-conditioning.

Michelle Obama: So that was my side. I would look and see the ground going past. And I still married him.

Mr. Obama: That’s how I knew she loved me. It wasn’t for my money.

They got their first look at their new home last Monday, when the President and Laura Bush invited the Obamas to the White House, which has 130 more rooms than that old Washington apartment.

Kroft: What was it like going through there?

Michelle Obama: Well, first of all, Laura Bush was just so gracious. She is a really sweet person. And couldn’t have been more excited and enthusiastic about the tour. So that was wonderful. And her entire team, their team has been working closely just to make us feel welcome. But the White House is beautiful. It is awe-inspiring. It is. What I felt walking through there was that it is a great gift and an honor to be able to live here. And you know we want to make sure that we’re upholding what that house stands for. But I couldn’t help but envisioning the girls running into their rooms and, you know, running down the hall and with a dog. And, you know, you start picturing your life there. And our hope is that the White House will feel open and fun and full of life and energy.

Mr. Obama: Sleepovers.

Michelle Obama: And sleepovers.

Kroft: I know that from talking to you, you’ve said that this has put a lot of, you know, your husband’s involvement in politics has put strains in your marriage from time to time. He’s about to take over the most pressure packed job in the world. But he’s also gonna be home, right?

Michelle Obama: Oh yeah. He’s got a big office at home now.

You know, this entire year and a half has brought us closer together as a family. And we managed to stay close and become even closer with Barack gone most of an entire two year period. And now we get to be together under the one roof, having dinners together. And, you know, I envision the kids coming home from school and being able to run across the way to the Oval Office and see their dad before they start their homework. And having breakfast. And he’ll be there to tuck them in at night. And, you know, again, you know, there’ll be moments of deep seriousness and times of great focus. But, you know, we’ll be together doing that. And that gives me reason to be very excited.

But that’s not the only thing that is about to change for the Obamas. When 60 Minutes first met them two years ago in Chicago, everything was much simpler.

Michelle Obama: You know, we’re still in the process of figuring out that transition. And what we have asked people to understand is that the decision that we make will be based on the best interest of the girls. We haven’t made that decision yet. And you know, we want that to be a persona; process. And people have been really good about respecting that.

Part III:

(Narration) Steve Kroft: The president-elect has a lot of decisions to make in the weeks and months ahead, and some promises to keep. One of them is to his daughters. When they began lobbying him two years ago to get a dog, he put them off by saying we’ll get one when we move into the White House. And the girls haven’t forgotten.

Steve Kroft: How are things coming on the dog front?

Michelle Obama: The dog, the dog front? We’re on-call mode on the dog front. Because the deal with the dog was that we would get the dog after we got settled. Because as responsible owners, I don’t think it would be good to get a dog in the midst of transition. So when we settle, get in a routine, we think about late winter, early spring, we’re gonna get the dog. Now, we cut that deal with the kids before America knew about it. So they’re good with it.

Mr. Obama: Although, Americans…

Michelle Obama: They’re ready for us to get the dog now.

Mr. Obama: They are ready.

Kroft: We put the paper down here just in case.

Michelle Obama: Is that…

Mr. Obama: I was wondering what that was for.

Kroft: You brought it today.

Mr. Obama: I thought it was some trick for the lighting or something.

Michelle Obama: It’s about dogs. That’s good.

Kroft: Do you have a special transition team for the dog? Or are you just doing that?

Michelle Obama: We don’t…. This is a family event. We’re getting a lot of suggestions though. Boy, I mean the people are sending suggestions. And we’re taking it all under advisement.

Kroft: There’s been a lot of talk about [that] you talked about your mother-in-law. Is she moving in with you?

Mr. Obama: Well, I don’t tell my mother-in-law what to do. But I’m not stupid. That’s why I got elected president, man.

Kroft:She can if she wants to.

Mr. Obama: But, she sure can if she wants. I think it’s fair to say that Marian Robinson is one of the unsung heroes of this campaign. We couldn’t have done it without her. ‘Cause she retired, looked after the girls, gave Michelle confidence that somebody was gonna be there when Michelle was on the road.

She’s just been an unbelievable support for all of us during this process. And you know, she likes her own space, you know. She doesn’t like a lot of fuss around her. And, like it or not, there’s some fuss in the White House. But we hope that she comes.

Kroft: So you have a new dog and your mother-in-law moving in.

Mr. Obama: Steve, I’m not gonna compare my mother-in-law to a new dog.

Kroft: You’re much more excited about your mother-in-law

Mr. Obama: How do you get in long with your mother-in-law man? You know, the way these questions are going I think I need to give you some tips.

Kroft: We get along fine. I have one last question. As president of the United States, what can you do, or what do you plan to do, about getting a college football playoff for the national championship?

Mr. Obama: This is important. Look, excuse me for a second.

Michelle Obama: Please. Don’t mind me.

Mr. Obama: I think any sensible person would say that if you’ve got a bunch of teams who play throughout the season, and many of them have one loss or two losses, there’s no clear decisive winner that we should be creating a playoff system.

Eight teams. That would be three rounds, to determine a national champion. It would it would add three extra weeks to the season. You could trim back on the regular season. I don’t know any serious fan of college football who has disagreed with me on this. So, I’m gonna throw my weight around a little bit. I think it’s the right thing to do.