President hints at 'hard choices'

Some analysts say Obama speech short on details

WASHINGTON - President Obama's soaring rhetoric about sacrifice and rebuilding the nation's economy was accompanied by a number of vague statements that left some analysts last evening saying that the president needs to quickly fill in the details.

"I think he is being honest to say that we face tough times now but we are going to get through this," said David Walker, the former US comptroller general who now heads the Peter G. Peterson Institute, a fiscal responsibility group. "The question is how are we going to get there? What is not clear from here is, what's his plan to accomplish these objectives?"

Obama hinted at some of the "hard choices" that must be made. Rescuing the banking system, he said, will mean "probably more [money] than we've already set aside," but he didn't indicate how much more. Democrats and Republicans must "sacrifice some worthy priorities for which there are no dollars. And that includes me," the president said. But he did not identify what he will sacrifice.

Similarly, Obama said that it will be costly to help the domestic auto industry survive, but the country would do "what is necessary." Obama did not provide details, but the government has already approved $17.4 billion in loans to GM and Chrysler, and the companies have asked for $14 billion more.

A major declaration in the president's speech was a sweeping but vague statement that he was creating a "new lending fund that represents the largest effort ever" to provide an array of loans to consumers and businesses. A White House official last night said Obama was referring to a previously announced initiative that relies on money from the $700 billion financial recovery package, better known as the Wall Street bailout.

Although Obama did not lay out specifics on healthcare, advocates on the issue were elated that he forcefully reaffirmed his commitment to overhauling the healthcare system this year. He also made it clear he intends to think big, insisting on insurance for everyone. "I hope what the speech does is stop the chorus of naysayers who say he doesn't really mean to do it in 2009, and get people to realize - yes, he does," said Richard Kirsch, president of Health Care for America Now, a liberal coalition campaigning to remake healthcare.

Ken Thorpe, chairman of the Department of Health Policy and Management at Emory University's Rollins School of Public Health, said Obama was "forceful, clear, and realistic" on healthcare, underscoring the need to contain costs. "If the White House really focuses on this as its next big initiative, I'm optimistic he can make major inroads this year," Thorpe said.

Last evening's speech was not designed to provide a laundry list of specifics; that will come in tomorrow's federal budget. But analysts said Obama was effective in the task of building confidence that he has plans to deal with an array of national problems. The speech was designed to renew the sense of hope that was the hallmark of Obama's campaign and to ease public anxieties about the staggering stock market and relentless bad news about layoffs and shutdowns.

Stan Collender, a former congressional budget aide who now works in public relations, said the president's goal was to be a calming voice in a time of national turmoil. He equated some of the rhetoric with the signature line from Franklin Roosevelt's inaugural address, "The only thing we have to fear is fear itself."

Analysts welcomed Obama's vow to hold banks accountable for how they use taxpayer dollars, although he did not give specifics. His administration is preparing a "stress test" to determine whether banks are viable before they can receive federal money, and Obama said he will take steps to ensure that banks are loaning to consumers - and not enriching bank executives.

Cornelius Hurley, director of the Boston University School of Law's Morin Center for Banking and Financial Law, said the president sent the right signal when he declared he would attach conditions to federal help for banks and limit executive pay.

Lisa Wangsness of the Globe staff contributed to this report.