Friday, November 21, 2008
The Power of President-elect Obama
U.S. Stocks Rally as Obama Picks Tim Geithner to Head Treasury
President-elect Barack Obama picked Timothy Geithner, head of the Federal Reserve Bank of New York, to be his Treasury secretary, with Lawrence Summers getting a senior White House role. Obama is also likely to nominate New Mexico Governor Bill Richardson as Commerce Secretary, and Arizona's Democratic Governor Janet Napolitano to serve as the next head of the Department of Homeland Security. Reports have it that Obama plans to announce his picks on Nov. 24. Despite conflicting reports from the NY Times, Sen Hillary Clinton is not yet poised to accept the Secretary of State position. That said, stocks have rebounded sharply on the news of the Treasury pick. The benefit of choosing Geithner is that he has been intimately involved with the current financial crisis from the begining, so he brings continuity with little need for any major transitions.