Released: November 05, 2008

Economic troubles await President-elect Obama

Source: Sue Kirchhoff and Barbara Hagenbaugh, USA Today

President-elect Barack Obama faces the worst economy in decades and historic decisions on expanding federal intervention in the marketplace — decisions that won’t wait for Inauguration Day.

Even as voters thronged polls Tuesday, data showing a sharp decline in factory orders in September added to recent reports suggesting the U.S. is falling into what could be a prolonged downturn.

Consumer spending, the driver of the U.S. economy, continues to weaken. Aggressive Federal Reserve and Treasury Department actions are starting to thaw credit markets, but banks remain reluctant to lend. Home foreclosures are mounting, credit card and auto loan delinquencies are rising, the world economy is in a swoon and U.S. companies have lined up for federal aid.

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