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The editorial with the above title (Business Line, November 6) brought out in a nutshell the challenges that the new US President-elect, Barack Obama, will face once he assumes office. There is no doubt that the most important of these is management of the US economy which is threatening to enter a phase of serious recession.

What with the total dilution of lending standards and the degeneration of banking leading to the present sorry state of finance and banking, lines of credit have completely dried up. Bank credit is the lifeblood of an economy. Obama has to focus on this major issue first and see that bank credit lines are revived to fuel growth and revival efforts. Unprofessional ways of investing in derivatives and innovative banking products must be curtailed.

There must be scrupulous implementation of rescue plans and alleviation of mortgage woes, aside from creation of massive job opportunities without adversely affecting profits of corporates by disallowing outsourcing, and expansion of quality education and health-care.

Weaning away Americans from spendthrift ways is also important. Obama has to achieve all these without bringing about any budgetary imbalances.

K. K. Ammannaya Udupi

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