Obama Says He Will Do `Whatever It Takes' on Economy

Nov. 17 (Bloomberg) -- President-elect Barack ObamaBarack Obama said the U.S. government will do ``whatever it takes'' to revive the economy, and that means ``we shouldn't worry about the deficit next year or even the year after.''

In the short term, ``the most important thing is that we avoid a deepening recession,'' Obama said in an interview broadcast last evening on CBS News's ``60 Minutes.''

Obama, who yesterday resigned his Illinois Senate seat, effective today, said the government needs to provide assistance to the automobile industry. Such aid -- in the form of a ``bridge loan,'' he suggested -- must be provided on condition that management, labor, suppliers and lenders come up with a plan to make the industry ``sustainable,'' he said.

``For the auto industry to completely collapse would be a disaster in this kind of environment -- not just for individual families but the repercussions across the economy would be dire,'' Obama said. If that were to happen now, he said, ``you could see the spigot completely shut off so that it would not potentially permit GM to get back on its feet.''

The hour-long interview with Obama and his wife, Michelle, was taped on Nov. 14 in Chicago, where he is working to build his government team before his Jan. 20 inauguration. The president- elect discussed the economy, the wars in Iraq and Afghanistan, and energy. He and his wife also talked about the changes in their lives after he defeated Republican John McCainJohn McCain in the Nov. 4 presidential election.

National Security

Obama also said he's moving quickly to assemble his national security team. ``I think it's important to get a national security team in place because transition periods are potentially times of vulnerability to a terrorist attack,'' he said.

Obama reiterated his intention to close the U.S. detention center at Guantanamo Bay, Cuba, and ban torture during interrogation of suspected terrorists as part of ``an effort to regain America's moral stature in the world.''

He said that after he takes office, he will begin executing a plan to draw down U.S. troops in Iraq and send some to Afghanistan, ``which has continued to worsen.''

Obama said it is ``a top priority for us to stamp out al- Qaeda once and for all,'' and that a critical aspect will be capturing or killing Osama bin LadenOsama bin Laden. The terrorist group's leader is ``not just a symbol'' but remains ``the operational leader of an organization that is planning attacks against U.S. targets,'' the president-elect said.

Energy Plan

On energy, Obama said that, with oil prices dropping in recent weeks, ``it may be a little harder politically'' to enact measures to lessen U.S. dependence on foreign energy. ``But it's more important,'' he said, noting that the country has gone through earlier cycles of energy shocks only to return to its heavy reliance on foreign oil.

As a result of such behavior, he said, ``we never make any progress. It's part of the addiction, all right. That has to be broken. Now is the time to break it.''

Obama said his job as president will be to bolster confidence in the economy.

``Part of the way to think about it is things could be worse,'' he said. ``We could have seen a lot more bank failures over the last several months. We could have seen an even more rapid deterioration of the economy -- even a bigger drop in the stock market.''

Obama said he soon will begin to make Cabinet appointments. He already has named about a half-dozen top White House staff. Obama said there would be a Republican in the Cabinet.

`A Great Feeling'

On more personal matters, Obama, 47, said he was enjoying sleeping in his own bed in Chicago, and seeing his two daughters in the mornings, after almost two years of non-stop campaigning. ``It's a great feeling,'' he said.

One adjustment, he said, is the loss of privacy, such as not being able to take a walk in his Chicago neighborhood.

Michelle ObamaMichelle Obama said she hopes the White House ``will feel open and fun and full of life and energy'' when the family moves in. She said first lady Laura BushLaura Bush was ``gracious'' and ``excited and enthusiastic'' when giving her a tour last week.

Obama said his family plans to get a dog after settling into the White House. ``I don't think it would be good to get a dog in the midst of transition,'' he said.

In excerpts of the interview released Nov. 15, Obama said Treasury Secretary Henry PaulsonHenry Paulson may be disappointed with some aspects of the federal government's $700 billion bailout of the banking industry.

``Hank Paulson has worked tirelessly under some very difficult circumstances,'' Obama said. ``I think Hank would be the first one to acknowledge that probably not everything that's be Play Video en done has worked th e way h

• Play Video Video: Obama, McCain To Meet At Loop Transition Office CBS 2 Chicago
• Play Video Video: Chief Technology Officer FOXBusiness
• Play Video Video: Investing in the O-conomy CNBC

e had hoped it would work.''

Obama also said the government must do more to help distressed homeowners.

``We have not focused on foreclosures and what's happening to homeowners as much as I would like,'' Obama said. He called for setting up ``a negotiation between banks and borrowers so that people can stay in their homes.''