Far more aggressive stimulus plan

With the financial crisis looming as a top priority of his term, Obama vowed the new administration "cannot hesitate and cannot delay" to stem the turmoil and save the economy.

"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," he said.

The president-elect said these extraordinary stresses on the US financial system require extraordinary policy responses.

"And my administration will honor the public commitments made by the current administration to address this crisis," he noted.

Obama pledged he will propose a recovery plan for both Wall Street and Main Street, a plan "that stabilizes our financial system and gets credit flowing again," while creating and saving 2.5 million jobs.

Obama's team is putting together a new economic stimulus plan containing more than US$500 billion in federal spending and tax cuts over the next two years, Obama aides and advisers were quoted as saying.

That package would be far more aggressive than anything envisioned during the campaign, according to a report by The Wall Street Journal.

Moreover, some economists speculated that the price tag could reach US$700 billion.

Obama declined to say how large the stimulus plan will be, but he said the plan will be "significant enough that it really gives a jolt to the economy."

"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," he added.

The president-elected also warned that full recovery will not happen immediately. "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," he stressed.

"And to make the investments we need, we'll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices," he noted.

But in an effort to bring confidence into the financial markets, Obama stated he was 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," he said, adding he knew the United States will work out the crisis "because we've done it before."

(Xinhua News Agency November 25, 2008)