Obama's Short on Details, Long on Optimism

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President-elect Barack Obama went for the hard-sell when he discussed his economic recovery plan Thursday, and despite being short on specific details, market analysts say investors should be optimistic about a potential near-term boost from the program.

Arguing that the current recession could "linger for years" if nothing is done, Obama said dramatic action must be taken as soon as possible. "In short, a bad situation could become dramatically worse," Obama said during his speech at George Mason University in Fairfax, Va.

Estimates currently peg the price tag of Obama's proposed American Recovery and Reinvestment Plan close to $800 billion, with 40% of that designated as tax cuts to individuals and businesses. The remainder would be used for infrastructure spending and to help individual states pay for Medicaid programs.

Obama's hope is to also increase spending on alternative energy, to computerize medical records, and to modernize schools, labs and libraries with new equipment. The president-elect argued that his solution will not throw more money at problems, but instead "invest in what works." He also plans to cut spending in other areas, promising that his goal is "not just another public works program."

However, when combined with the federal budget deficit, which now stands at a staggering $1.2 trillion, nearly three times the record set in 2008, there are concerns that the U.S. is mortgaging its future in order to fund a quick fix to an economic recovery. While Obama is preaching a "clean break from a troubled past," saying that "only government can provide the short-term boost needed," some worry that a $2 trillion deficit for the U.S. will be hard to overcome years down the line.