Obama vows to tackle financial crisis head-on after taking office

PRESIDENT-ELECT Barack Obama has vowed to confront the economic crisis head-on immediately after he takes office next January…

PRESIDENT-ELECT Barack Obama has vowed to confront the economic crisis head-on immediately after he takes office next January by taking "all necessary steps" to ease the credit crisis and restore economic growth.

Mr Obama was addressing reporters for the first time since his election, following a meeting with senior economic advisers to discuss the worsening economic situation.

Mr Obama was speaking as unemployment in the US reached a 14-year high and carmakers General Motors and Ford reported huge losses and warned that they were fast running out of cash.

"In total, we've lost nearly 1.2 million jobs this year, and more than 10 million Americans are now unemployed," he said.

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"Tens of millions of families are struggling to figure out how to pay the bills and stay in their homes. Their stories are an urgent reminder that we are facing the greatest economic challenge of our lifetime, and we must act swiftly to resolve them."

Mr Obama was in good spirits during yesterday's press conference, joking with reporters about his struggle to choose the right dog for his daughters.

The tone was more formal than during the campaign, however, with reporters rising as Mr Obama entered the room and standing as they posed questions, addressing him as "Mr President-elect."

Mr Obama is not expected to attend next weekend's global economic summit in Washington and he stressed that President George Bush remained in charge until January.

"The United States has only one government and one president, and until January 20th of next year, that government is the current administration," Mr Obama said.

"I have spoken to President Bush, and I appreciate his commitment to ensuring that his economic policy team keeps us fully informed as developments unfold."

Mr Obama said, however, that he hoped Congress would approve a new economic stimulus package before he takes office. "A particularly urgent priority is a further extension of unemployment insurance benefits for workers who cannot find work in the increasingly weak economy."

Describing the selection of a dog for his daughters as "a major issue", Mr Obama said he had to balance the fact that one of his daughters has allergies, so the dog should be of a breed that is hypo-allergenic, with his wish to acquire an animal from a shelter.