Washington: The Way Forward - Transition
Even if you’re not a politics person, you’re probably closely monitoring the transition from Bush to Obama. After all, your future depends on it.
Amid new indications of a weakening economy, the president-elect must now decide how to insert himself into the most pressing issues facing the nation, including the global economic summit to be held on November 15th, which has been nick-named Bretton Woods II, in honor of the monetary conference held in 1944.
Over the next 75 days he must also develop initiatives to jump-start the economy and address the myriad of issues vexing the financial system.
Treasury Secretary Henry Paulson pledged Thursday to work closely with President-elect Barack Obama to pave the way for a smooth transition as the United States battles its worst financial crisis in decades.
"A methodical and orderly transition is in the best interests of the financial markets and Treasury is committed to making sure that the incoming team can hit the ground running in January," Paulson said in a brief statement.
And many companies, including automakers and insurance firms, are pressing Obama for some financial assistance.
However, one area where the President-elect might not get help is with another stimulus package. Despite saying Friday, “I want to see a stimulus package sooner rather than later," the current administration might not be too keen to lend a hand.
According to Keith Hennessey, assistant to President Bush for economic policy, don’t expect to see an aggressive move in that direction. “I don’t think so, he tells Fast Money. "We haven’t seen stimulus ideas that will actually stimulate the economy.”
He says the current administration doesn’t like the ideas being kicked around which he says are really just initiatives to build new roads and bridges. "That helps the construction workers but it’s not going to help the economy grow.”
Does that mean another stimulus package is dead? Probably not. The new President intends to make it a priority. "If it does not get done during the lame duck session it will be the first thing I get done as President of the United States,” Obama says.
You can see our entire interview with Keith Hennessey at the end of the Word on the Street video.
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Trader disclosure: On Nov.7, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (F), (MER); Pete Najarian Owns (MSFT) And Is Short (MSFT) Calls; Pete Najarian Owns (CHK) Call Spread; Pete Najarian Owns (MBI) Put Spread; Pete Najarian Owns (YHOO) And Is Short (YHOO) Calls; Macke Owns (BNI), (DIS), (UUP), (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (NUE), (MSFT); Finerman's Firm Owns (DNA) Call Spreads; Finerman's Firm Owns (MSFT); Finerman's Firm Is Short (USO), (IYR), (IJR), (MDY), (IWM), (USO), (SPY), (RTH); Finerman's Firm Is Short (VNO)
CNBC.com with wires