Obama announces economic team

BUFFALO, N.Y. (WIVB) - Things will get worse before they get better. That's the latest word on the money meltdown from President-Elect Barack Obama.

As he pushes Congress to begin work on a major stimulus package, Obama said millions of people could lose their jobs in the next year.

President-Elect Barack Obama said, "We are going to do what's required to jolt this economy back into shape."

President-Elect Barack Obama announced his economic team Monday, amid yet another bailout - this time to Citigroup for another 20 billion.

Buffalo resident Carolyn Pierce said, "I don't think he will be able to do anything without surrounding himself with the right people that can help him."

And that is Obama's goal.

He announced Monday that Former Treasury Secretary Larry Summers will head up his National Economic Council and New York Federal Reserve President Timothy Geithner will be his Treasury Secretary.

Buffalo State Economics Department Chair Ted Schmidt said, "It almost pushes Paulson aside a little bit now that Geithner's the incoming treasury secretary and he certainly will help shape things as we transition."

University of California, Berkeley Economics Professor Christina Romer will take over as chair of the President's Council of Economic Advisors.

And the one surprise pick Monday was policy expert and relative unknown Melody Barnes.

Schmidt said, "That's an interesting pick because especially since he emphasized this idea of long-term growth with health care, education, infrastructure, and her area of expertise being health care and education."

President-Elect Obama also talked about his economic stimulus plan to create 2.5 million jobs, but didn't give any details as to how he would fund it.

Schmidt said, "Well it's preventing job losses but also building back and growing jobs again."

Many western New Yorkers just hope he sticks to his campaign promises.

Kenmore resident Lloyd Tanner said, "His platform her ran on, I hope he doesn't change his platform."

As Obama spoke Monday, stocks dipped about 150 points, but then rebounded to end the day up nearly 400 points.