Obama to help struggling states

WASHINGTON - US president-elect Barack Obama has warned that America faces "hard choices" in an economic recession, but he promised aid to the more than four-fifths of states facing possible cash shortfalls.

WASHINGTON - US president-elect Barack Obama has warned that America faces "hard choices" in an economic recession, but he promised aid to the more than four-fifths of states facing possible cash shortfalls.

Obama told a gathering of the country's governors in Philadelphia that he would seek their guidance in crafting an economic recovery plan upon entering office on January 20.

"This administration does not intend to delay in getting you the help we need," Obama said.

Obama has promised a new fiscal stimulus package that could total as much as R7,200billion to help raise the world's largest economy out of recession.

"These are difficult times. I don't think anybody here is viewing the situation through rose-coloured glasses," he said.

"We're going to have to make some hard choices in the months ahead." - Sapa-DPA

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