Obama likely to make early mark on economy

The battered housing industry is also seeking relief from the new administration, which faces decisions on a number of issues that have effectively been on hold in the final weeks of the campaign. Among them is the long-term future of mortgage giants Fannie Mae and Freddie Mac. The government takeover of the two companies helped stop their financial hemorrhaging, but the long-running debate over whether to rebuild them — or split them up —now begins again in earnest.

So will the debate over how much further the government should go in providing relief for millions of homeowners facing foreclosure. A housing relief bill enacted last summer stopped short of direct government intervention. But in recent weeks, Federal Deposit Insurance Corp. Chairwoman Sheila Bair has been pressing a plan to use money from the financial rescue package to provide government guarantees for failing mortgages.

Democrats in Congress have also pushed unsuccessfully to change federal bankruptcy law to allow judges to modify home loans; that idea could find new support in Obama’s housing relief efforts.

As the impact of $100 billion in special tax rebates this year has faded, Congress is already considering another government spending package to get the economy going again. This time around, governors and other state and local officials are pressing for federal support for hundreds of projects to rebuild roads, water and sewer systems that are ready to go but lack funding. Contractors, raw materials suppliers and construction equipment makers would be immediate beneficiaries of that spending.

Given the pressing economic problems, Obama’s pledge to reform the health care system may get pushed further down on the list of priorities. But given the rising burden of health care on private industry and the government, it remains a major issue. Drugmakers could see price controls, although expanded insurance coverage could increase their customer base. Health care providers could be squeezed by cost-control efforts.

Political analysts have credited Obama with using technology to power his campaign. The president-elect has also enjoyed strong support from the high tech sector, including a high-profile endorsement from Google CEO Eric Schmidt. Now some in Silicon Valley expect Obama to return the favor.

“This is one of the youngest presidents the United States has ever had,” said venture capitalist Steve Westly. “He's forward looking. He understands the power of technology. He's someone who has grown up in a different era than past presidents. I think that’s going to be very good news for Silicon Valley.”

For all the debates, position papers and speeches, it remains to be seen how much of Obama’s agenda will become law. The first-term senator will have to draw on different skills as he assembles a Cabinet, navigates a new role as leader of the executive branch of government and confronts some of the biggest problems the country has faced in generations.

But Obama’s success in winning one of the country's longest and toughest political campaigns is a promising sign that he has those skills, according to former General Electric CEO Jack Welch. (Msnbc.com is a joint venture of Microsoft and GE's NBC Universal.)

“If you look at management skills with execution as one of the real issues, this guy demonstrated, without question, the best execution I've ever seen in a presidential campaign and maybe management execution,” said Welch. “He came from a basement start-up to build an organization that was flawless. This is a manager. This is a real manager.”

Also in msnbc.com business Answer Desk: The risks of investing extensively in gold Your Career: The repercussions of expressing your faith Interactive: 10 cars we’re looking forward to in 2010 ‘Reaching out’ and the other worst buzzwords of the year   Video: Existing home sales make an unexpected jump

MORE FROM EYE ON THE ECONOMY

Eye on the Economy Section Front

Is your bank in trouble? More report bad loans Inflation stays in check as housing starts rise Economy gets tidings of hope for holidays One year later, Madoff case is far from over NYT: U.S. forecasts smaller loss from bank bailout Battle lines forming over TARP extension Obama talks of jobs plan in weekly address Productivity rises by largest amount in 6 years Bleak job scene poses challenge for Obama 'Problem' banks at highest level in 16 years Eye on the Economy Section Front   Add Eye on the Economy headlines to your news reader: