President Elect Obama Has A Monumental Challenge Ahead, Delivery.......

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Written by Nick Deonas

Tuesday, 11 November 2008 08:54

With Election Day exactly one week ago, the Nation can sit back and take a break, and what a ride it was. There is one person who can't do that and who hasn't, President elect Obama. He now faces challenges that no other President has had to face. A sinking economy not only in this country but other countries around the world, many who are blaming the US for their problems. The biggest problem he is facing is a Nation that is expecting him to solve all these problems, and quickly.

I was pumping gas just yesterday and a gentleman at the next pump struck up a conversation, he was telling me that gas prices fell because big oil companies knew Obama would win. I listened and realized this person really believed this. He continued to tell me that as soon as he is sworn into office things would be back to normal by spring, he believed this also. I didn't know how or if I should correct him or just let it be. I chose the latter avoiding what would be a lengthy discussion of facts and figments.

This is what this country is now expecting. I listened to the President elect on the night of the election and I think he knows it will take time. He set the stage that night by saying it may take longer then one term to fix the problem, that's a four year fix, not spring of 2009.
I think we are in for a few years of many rough roads ahead. A few of the reasons a quick fix is not in the cards;

   •   The deficit will be more than $1 trillion a year for several years
   •   The country needs a massive new fiscal stimulus
   •   The housing market will continue to decline through at least 2010
   •   Interest rates and taxes will eventually have to rise (after the economy stabilizes)
   •   Weak corporations have to be allowed to fail
   •   Millions of homeowners will lose their house
   •   Unemployment will probably rise to 10%
   •   The government simply cannot "bail the country out" -- not because it lacks the will, but because it lacks the power

In short, Obama needs to acknowedge reality, erring on the side of overstating the problems and challenges, and he needs to prepare the country for several tough years. Because if he doesn't, within six months of his taking office, the country will have forgotten all about the prior administration and will instead be blaming everything on him.

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