Nearly 24 hours after Treasury Secretary Timothy Geithner delivered what was supposed to be the Obama Administration’s comprehensive “Financial Stability Plan,” the overall consensus among market analysts, economists, and the media alike was that the address was regarded as an overall failure.

The stock market’s reaction to Geithner’s speech yesterday (the Dow dropped nearly 400 points) reflected a serious let down, brought on by the market’s anticipation for a plan of action. Instead, what we all got was a reminder of each problem the economy is facing, without any detailed strategies to fix them. The days leading up to the speech distorted the marketplace by providing a false sense of anticipation that fully-formed plans were ready to be put in place immediately.

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Treasury Secretary Timothy Geithner concluded his address on the government’s “Financial Stability Plan” late this morning with a candid and sincere statement: “…this strategy will cost money, involve risk, and take time.”

Yet, Geithner’s sincerity failed to make up for his vague overview. The Treasury Secretary outlined the Obama Administration’s plan of action with three main goals: “clean up and strengthen” banks, restore the natural flow of credit, and provide aid to homeowners and small businesses.

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Henry Paulson’s last month as Treasury Secretary is likely to be a quiet one, barring any unforeseen financial emergencies. Mr. Paulson has made a few statements as of late suggesting that the probability of any final big-ticket decisions by him is slim.

In a CNBC interview, Mr. Paulson said he does not plan to seek the second half of the TARP funds. Yet, Paulson did refer to the Treasury’s ongoing attempt to provide the Big Three with a bridge loan, funded by the remaining billions of the TARP’s first installment: Read the rest of this entry »

President-elect Barack Obama officially introduced his economic team as well as plans for a “major” stimulus package today at a noon press conference:

The president-elect introduced the top economic advisers for his new administration. New York Federal Reserve President Tim Geithner was selected to be treasury secretary. Mr. Geithner, 47 years old, is a veteran of financial crises at home and overseas and has worked closely with the Bush administration in recent months.

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We’ve mentioned before that one of the most important things President-elect Barack Obama needs to do is instill confidence back into the American psyche. During these turbulent times that is no easy task — it won’t happen overnight, nor should America expect it to. That being said, Obama’s transition into the presidency is unlike any other. Although Obama has no presidential power until January, he must swiftly act and prepare now so that on Inauguration Day citizens will be confident and secure that our new commander in chief is ready to lead the change he has promised. Much of that starts with appointing a treasury secretary.

Despite the discussion of several possible candidates, Obama has yet to name his pick — could it be because no one wants the tremendous burdens the position carries with it? Numerous leaks out of Obama’s transition camp have revealed his likely choices for secretary of health and human services (Tom Daschle (S.D.)), head of the Department of Homeland Security (Arizona Gov. Janet Napolitano), and the attorney general (Eric H. Holder Jr.) — none of which will have an immediate effect on quelling the current economic situation.

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In his first press conference since becoming elected president, Barack Obama addressed reporters after a meeting with the “transition economic advisory board, a high-powered collection of business, academic and government leaders.” The press conference offered virtually nothing in the way of announcements. Perhaps the only definite that Obama led onto was the need for a second stimulus:

“We are going to need to see a stimulus package passed, either before or after inauguration.”

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