Real Estate Investing

Illinois Senator Barack Obama has been elected as the first African-American President of the United States.  This is a true huge moment in the history of this nation.  However, the election was the easy part… now the hard work begins.  President-Elect Obama faces a daunting task of bringing the economy back into balance so the selection of his cabinet members will be vitally important.

I agree with CNN that the first cabinet position to be filled should be the Secretary of the Treasury.  Although the campaign chiefs are being quiet about who this person would be, CNN reports on speculations for possible choices,

New York Federal Reserve President Timothy Geithner is seen as one of the leading candidates for Obama. Geithner was the Fed’s point person on the rescue of Bear Stearns and American International Group as well as the failed talks to keep Lehman Brothers out of bankruptcy.

and

Obama economic advisor Warren Buffett has also been suggested as a potential pick for Treasury secretary. And during the second presidential debate, McCain even endorsed him as a possible pick if he wins.

Two former Treasury secretaries are also mentioned among possible Obama picks - Robert Rubin and Lawrence Summers. Rubin has ruled out a return to Washington, however.

My own suggestion is Senator Kay Bailey Hutchison (R-Texas).  In a previous life, I worked for a financial assciation of which Senator Hutchison was a member when she served as State Treasurer.  She was possibly one of the smartest people I’ve known with a sharp financial acumen.  She currently serves on the Committee of Appropriations and is ranking member of the Committee on Commerce, Science, and Transportation. 

Also, Peter Lynch could be brought in as an advisor to the Obama administration.  His mantra has been, “Invest in what you know.”  That famous investment principle could be a beacon for a recovering economy.  And why would we support such a simple thing?  Because housing - real estate - is one of the three basic needs for survival: food, shelter, and clothing.  Even birds need their own nests.  Shelter is what we know and we hope that people will come back to real estate for their investment needs.

Time will tell whether President-Elect Obama does cross party lines for his political appointments.  My hope is that his cabinet choices be made because they are the best and the brightest in the various areas of responsibility, not because they happen to be of his own political party.

Photo by narcosislabs, courtesy of FlickrCommons.