The new Barack Obama administration, which will start holding office in January 20th next year, is fast realizing that the very crisis that propelled them to election victory just a couple of days ago is now the top of its priorities. Just a few minutes ago, the Department of Labor reported 240,000 job losses in just the month of October up from September’s 159,000. This is worse than most people thought and it has certainly hurt confidence in the markets.
Although reports also today suggest that Obama will not yet be making personnel announcements regarding the people who will be helping him run the economy, calls on him to name an economic team as soon as possible is growing louder by the day. To even illustrate the pressing concern for the new president-elect, immediately after his election victory against Republican rival John McCain, Wall Street fell to its worst two-day loss ever.
Many believe that not since the 1930s when Franklin Roosevelt took over the reigns of a country that was experiencing a depression, that an incoming president will inherit an economy in such massive economic turmoil. Just as when many had thought the seemingly stable movements in the stock markets in the last two weeks would mark the end of extreme volatility, the dismal numbers in the jobs market has now reaffirmed fears that the credit crunch is now coupled with a major standstill in the real economy.
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