March 18, 2009 – President Obama is calling for more effective ways to deal with troubled companies like insurer AIG, after learning the company spent millions of tax-payer dollars on bonuses for the folks who created toxic assets and the need for the bailout. 

Before departing Wednesday for two days in California, the president told reporters gathered on the South Lawn, “So my economic team is going to be consulting with the Hill.  We’re going to be moving that on a fast track.  This is part of the broader package of financial regulatory steps that we’re going to be taking that ensures that going forward in the future we’re not going to find ourselves in these kinds of terrible positions again.”

AIG has come under fire  for giving millions in employee bonus payments after begging the feds for help and being given government support to the tune of  $182.5 billion.

Outrage has been the theme in recent days, and Obama wants to get out in front of this issue before his credibility on the bailouts is tainted by this kind of behavior.  And he’s not alone; Congress held hearings Wednesday and grilled AIG company executives so intensely that they were showing signs of remorse and suggesting ways they could get the bonus money returned by employees.

“People are rightly outraged about these particular bonuses.  But just as outrageous is the culture that these bonuses are a symptom of, that have existed for far too long — a situation where excess greed, excess compensation, excess risk-taking have all made us vulnerable and left us holding the bag,” Obama said.

Right now the American taxpayers and holding the bag and it’s running on empty. 

The administration lead on AIG’s problems is Treasury Secretary Timothy Geithner.  Obama said, “Nobody is working harder than this guy.  He is making all the right moves in terms of playing a bad hand.

“I want to repeat something that I said before the joint session:  My interest is not protecting banks.  My interest is protecting the American people; the people’s 401(k)s; ordinary folks who have a credit line with a bank for their small business; people whose pension funds are invested in some of these financial institutions,” Obama said.

Now we’ll have to see if the White House and Congress can come together and make it happen.

Jan. 27, 2009 – President Barack Obama opened his first full week with issuing two Executive Orders calling for more stringent fuel economy standards by 2011 and setting emissions standards lowering greenhouse gases.  

By signing these memorandums the president removed the road blocks placed on states to legislate stricter limits on vehicles carbon dioxide emissions.  Under the Bush administration California was denied the right to require higher standards.  “America will not be held hostage to dwindling resources,” Obama said to those gathered in the East Room.

California’s application for a waiver last year was blocked by the Environmental Protection Agency under the Bush administration. If this request by California is approved by the EPA, more than 12 states could follow suit and introduce tougher state standards than federal requirements.

Rep. Barbara Lee (D-Calif.) released a statement applauding Obama’s actions. “As a longtime supporter of California’s bold agenda to reduce greenhouse gas emissions I am pleased by today’s announcement, which sends a clear signal from the Obama Administration regarding their commitment to work in concert with pioneering efforts at the municipal and state level in the fight against climate change.”

The president also directed the Department of Transportation to get busy with the auto makers by imposing an 18 month timeline to improve fuel efficiency standards by 2011.
 

Before the day ended the Senate approved New York Federal Reserve Bank President Timothy Geithner as treasury secretary with a vote 60-34.  The vote was closer than expected, but Geithner was confirmed Monday evening and the president moved quickly to have him sworn in.  “Tim’s work will begin at once. We can’t waste a day,” Obama said, standing beside Geithner as Vice President Joe Biden delivered the oath.
 

By Pamela Gentry, Senior Political Producer
Nov. 24, 2008 — President-Elect Barack Obama moved one step closer to putting his economic plan into motion by announcing the key leadership post who will now be responsible for making his economic plans a reality. 

Flanked by his veep, Obama told reporters, “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 the Treasury; Lawrence Summers as the Director of our National Economic Council; Christina Romer as Chair of the Council of Economic Advisors; and Melody Barnes as Director of the Domestic Policy Council. “

Obama said he understands the enormity of the task and has asked his team to move forward swiftly.  “Again, this won’t 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.

As if tempering his and the expectation of the American people, he added, “A full recovery won’t happen immediately.”

Managing expectations won’t be easy, but at least its a start.
 

 Nov. 24, 2008 – Today, when President-elect Barack Obama and Vice President-elect Joe Biden announce their hand-picked economic team, the next hurdle will be explaining how they will accomplish Obama’s plan to add 2.5 million jobs to the workforce.

Where will these jobs come from and how will he do it?  Obama is proposing a two-year initiative to put Americans to work here at home rebuilding the nation’s crumbling infrastructure.  It’s work that needs to be done, and his plan isn’t a “new” idea, but it could be the largest proposed spending program since President Franklin D. Roosevelt’s New Deal.  (Estimates have been as high as $500 billion) But can a stimulus of this nature work in today’s employment environment?

That will be one of the first challenges facing his newly appointed economic team.

During the president-elect’s weekly radio address, he said he’s already instructed the  team that jobs are a priority. “We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels; fuel-efficient cars and the alternative energy technologies that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead.”

The folks Obama plans to announce later today, along with Timothy Geithner, who’s been tapped to fill the top job as Treasury secretary, will be charged with making all this happen.  But two important questions will remain once the team is put in place:  How much will it cost to create 2.5 million new jobs and how will the task be accomplished?
I doubt either question will have easy answers.

Do you think jobs should be the first issue on the new president’s agenda?