In a period that has been less a traditional transition than an incremental inauguration, Obama so far has performed masterfully. Before the Mumbai terrorist attacks, he dominated the news and drove world financial markets with three successive press conferences, announcing a heavyweight economic team and previewing a deficit-heavy stimulus package. Last week, markets rose on the updraft of Obama’s words; evidently, there is a futures market for hope (though as Monday’s steep decline revealed, that doesn’t alter the dreary fundamentals).

At his national security press conference on Monday, Obama introduced a team that not long ago would have been as unexpected as his own election. He has engaged a retired Marine general as National Security Adviser and re-enlisted Bush’s Secretary of Defense to help engineer his withdrawal from Iraq. (I don’t share the apprehension of some Democrats about Obama’s choices; he won’t break his pledge on Iraq, which would shatter both his credibility and his party.)

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