×

Up To $600 Billion In Stimulus?

graphic_fast_money.jpg

The Obama Plan

Wall Street watched intently as Barack Obama unveiled his economic team. The group didn’t say much but that didn’t stop Dylan Ratigan from digging up more details!

The Economic Team

Obama held a press conference on Monday in which he introduced New York Federal Reserve president Tim Geithner as his treasury secretary. He then presented Lawrence Summers as director of his National Economic Council. (Summers was treasury secretary under former President Bill Clinton.) And he named Christina Romer as chair of his Council of Economic Advisers, and Melody Barnes as director of his White House Domestic Policy Council.

Obama said his newly minted economic team offered "sound judgment and fresh thinking" at a time of economic peril.

Although the Dow soared by the end of trading it slipped while Obama was speaking. The Street didn't seem to like that the team failed to offer any specifics.

Like you, Dylan and the traders want specifics and they were determined to get them. Enter Obama adviser Laura Tyson, who appeared Monday on Fast Money.

New Details

“As an observer of policy I think we are in a historic capital market crisis and it’s not clear that market fundamentals are at play,” Tyson revealed on Fast Money.

“There’s fear and panic at play and when that’s the case the government must use its large balance sheet to save institutions at risk, if those institutions are important to the system’s functioning.”

Tyson was, of course, referencing the bailout for Citigroup.

Restoring 'Normalcy'

“We have to do whatever is necessary to bring the capital market back into some normalcy of functioning,” she added. “The interests of Wall Street and Main Street are one in this kind of crisis. We need to look at this as systemic effort to restore normalcy to the market.”

But what does it take to "restore normalcy"? Some kind of stimulus, surely.

Dylan Ratigan pressed Tyson for specific numbers and she responded by saying, “I would recommend between $300 - $600 billion of stimulus.”

But don't expect a check in the mail, Tyson also said she'd recommend that the bulk of that money be spent on infrastructure, energy and education.

Sounds like a new deal. We'll be watching.

**************

Dylan Ratigan’s conversation with Obama advisor Laura Tyson was quite heated. See it for yourself. Watch the video now!


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Nov.24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (UUP), (WMT), (MSFT); Macke Is Short (TM); Seymour Owns (AAPL), (BAC), (ETFC), (F), (MER); Seygem Asset Management Owns (VIP); Finerman's Firm Owns (DNA) Calls; Finerman's Firm Owns (DSX), (MSFT), (XLF); Finerman's Firm Is Short (USO), (GNK), (EGLE), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM), (RTH); Terranova Owns (DIS)

Charles Schwab Is A Sponsor Of "Fast Money"

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CLB), (DLR), (EPR), (EXR), (MAC), (SLB), (SKT), (UA), (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns More Than 1% Of Shares Of Corporate Office Properties Trust SBI MD



CNBC.com with wires