Markets Have Record Slide For Obama Inauguration

Wall Street ushered in the Barack Obama presidency with a record Inauguration Day slide Tuesday amid fresh signs the global bank crisis was far from over.

An index of bank stocks lost 19.7 percent on fears of more losses. The Dow Jones industrial average fell 332.13 points, or 4.01 percent, to end unofficially at 7,949.09. The S&P 500 Index slid 44.90 points, or 5.28 percent, to finish unofficially at 805.22.

The Nasdaq Composite Index tumbled 88.47 points, or 5.78 percent, to close unofficially at 1,440.86.

Meanwhile, the White House Tuesday outlined some of President Barack Obama's major policy objectives as he became the 44th U.S. president.

The first African-American to become U.S. president swore to preserve, protect and defend the Constitution against a backdrop of a deep economic downturn, a trillion dollar federal deficit and fears of more bank losses.

Barack Obama took office on Tuesday with bank shares tumbling, the car sector teetering and a world economy in tatters, and the new U.S. president vowed to meet the daunting challenges.

His aides vowed to go to work immediately, armed with the authority to spend the second half of the $700 billion financial rescue plan and a proposed stimulus package of $550 billion in spending and $275 billion in tax cuts.

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"That we are in the midst of crisis is now well understood,'' the new president said, mentioning war, a battered economy and sagging confidence. "Today I say to you that the challenges we face are real.They are serious and they are many. They will not be met easily or in a short span of time. But know this, America—they will be met,'' he said upon taking the oath.

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Obama pledged to revive a U.S. economy that he said had been badly damaged by "greed and irresponsibility" and an avoidance of hard choices. He said the economic crisis showed that markets can spin out of control "without a watchful eye" and that prosperity must be shared more broadly.

The new president did not delve into specifics about his proposed $825 billion economic stimulus package. But he said the plan that would pay for new roads, bridges, electrical grids and other projects would set the foundation for future growth.

Seeking to quell concern about the eye-popping price-tag for the stimulus plan, Obama promised to make government more efficient and ensure that money is spent wisely.

Later in the day, the White House said Obama administration aims to double production of alternative energy in the next three years. It hopes to modernize more than 75 percent of federal buildings and improve the energy efficiency of 2 million U.S. homes, saving consumers and taxpayers billions of dollars in energy costs. The administration aims to help create 5 million new jobs by investing $150 billion over the next decade to back private efforts to build clean energy sources.

Pledges to Ovehaul Wall Street Rules, Reform Health Care

Obama's reference to the lack of a watchful eye on markets signaled he would put a priority on revamping financial regulations. In an indication of how he may try to frame the debate over Wall Street reform, Obama praised the ability of markets to create wealth and spur freedom but insisted that careful oversight was also crucial.

AP President Barack Obama

Obama listed reform of the health care and education systems and action to tackle climate change as among his top domestic priorities. Obama envisions changes in the U.S. health care system, which is the world's most expensive although it trails many other countries in key quality measures.

The plan is intended to strengthen employer-provided health coverage, make insurance companies accountable and ensure a patient's choice of doctors.

The president pledged to make investments to ensure that within five years all medical records are computerized, moving away from paper records in a bid for greater efficiency.

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The administration wants to require insurance companies to cover pre-existing medical conditions. It also backs a new tax credit to help small businesses provide affordable health insurance to employees.

The White House seeks to allow the importation of medicines from other developed countries and increase the use of lower-cost generic drugs in public programs.

CONTINUED : Obama Riding A Wave

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