Foreclosure Crisis Should Be Top Priority for President Elect Obama

Foreclosure crisis should be top priority for President-elect Obama and vice-president elect Biden. The transition from Bush to Obama is already in process. It is said that Obama wants Rahm Emanuel to be chief of staff. Obama will also be given intelligence briefings.

It seems to be a good beginning in keeping with methodical Obama whose style avoids drama. Most probably no hasty announcements will be made. The transition period runs into eleven weeks – allowing for time to think over names and candidates. Everything can wait but instant start must be made over economic and financial issues. It is being rumoured that Obama will be waiting till Thanksgiving before announcing a new secretary for the Treasury. But that is not as soon as the nation expects. Obama and his team must get down to the foreclosure related crisis here and now without delay.

At this stage the outgoing White House members cannot really do anything major except for granting pardons, issuing few unimportant orders and tampering with irrelevant regulation. Serious matters like health care or aviation rules are left untouched. So following protocol the departing White House and Congress members are allowed to enjoy their final days without disturbance.

But in the financial market eleven weeks is a long time. In the past couple of weeks vital governmental decisions have been taken in financial matters – take over of Fannie Mae and Freddie Mac, bailing out of AIG, allowing Lehman Brothers to collapse, increase of reo homes, passing of a jumbo bail out package, amassing by the Treasury of certain bank shares and taking of measures by the Federal Reserve to allow for cash to flow in the money markets. Supposedly more dramatic efforts might not be required during the coming eleven weeks because with such massive bail out efforts perhaps there will be none left to be saved.

Other things however could go wrong. The Treasury has been given absolute powers to make serious decisions about large financial bodies and to ink agreements that will last for many years. Since it is Obama and his team that will be honouring these commitments it is imperative that this new group enters the room where the decisions are being made and not allow politely for another eleven weeks to flow by. Obama team is going to be accountable tomorrow for decisions being taken today. There is also the chance of the Congress being mischievous. Obama should sit up to these realities here and now.