Suburban experts give treasury choice high marks

Suburban economic experts and elected officials sounded notes of cautious optimism Monday after President-elect Barack Obama formally unveiled his economic team to the public.

Among the people Obama introduced were New York Federal Reserve President Timothy Geithner, the man Obama wants to be Treasury secretary, and former Treasury Secretary Lawrence Summers, whom Obama wants to head the White House Economic Council. Summers served as Treasury secretary in the Clinton administration.

During a news conference in Chicago, Obama said that to turn the slumping economy around his administration will have to hit the ground running when he takes over the presidency in January. His economic team will help ensure that happens, he said.

"We do not have a minute to waste," Obama said.

Alexander Paris Sr., a Barrington Hills resident and chief economist with Barrington Asset Management, said Obama's choice of Geithner, a man who has experience dealing with financial crises at home and abroad, should send a message to Wall Street that Obama means what he says.

"(Geithner) has a reputation for being apolitical, which I think is very critical," Paris said. "He is a respected figure in the financial world, and I think his appointment is good news."

On the other hand, Obama didn't provide many specifics Monday about his taxation plans, something Wall Street was eager to see, Paris said.

"He obviously was trying to create an image, but I'm not sure how it will fly," he said.

Diane Swonk, chief economist and senior management partner with Mesirow Financial in Chicago, praised Obama's choice of Geithner and Summers.

"Obama's got a deep bench now," Swonk said. "His choices will allow the administration to take up the baton in January and start running with it."

U.S. Rep. Mark Kirk, a Highland Park Republican who represents the 10th Congressional District, also praised Geithner, saying he is "well respected on the Republican side and the Democratic side."

Nancy Coutu, owner of Money Managers Advisory Inc. in Oak Brook, dissented. She said she's disturbed that Obama seems to be surrounding himself with people from the Clinton years.

"His campaign was all about change, but now he's bringing in the same old cronies," she said.

In addition to Summers, Obama is expected to nominate Eric Holder Jr., a Justice Department official during the Clinton years, as his attorney general, and U.S. Sen. Hillary Rodham Clinton as his secretary of state.

"I hope every one of Obama's promises come true," Coutu said. "But so far, the team he's putting together doesn't impress me."

• Daily Herald staff writer Joseph Ryan and Daily Herald news services contributed to this report.