America might be hoping the festive season will usher in better economic news in the New Year, but President-elect Barack Obama is not so optimistic.

For the first time since his election he was notably downbeat during an interview on national television. Obama warned that the economy is a big problem and that it is going to get worse but stressed he was prepared to tackle it.

“I do think that we have to put in place a set of rules of the road – some financial regulations that prevent the kind of speculation and leveraging that we saw, in the future. So as part of our economic recovery package, what you will see coming out of my administration right at the centre is a strong set of financial regulations,” Obama told television viewers.

As if to illustrate the new mood expected at the White House, Obama went on to say he supported efforts to help the struggling US car industry but said any emergency bailout would hinge on Chrysler, General Motors and Ford producing a sustainable business plan.

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