WASHINGTON (Reuters) – Barack Obama took power as the first black U.S. president on Tuesday and quickly turned the page on the Bush years, urging Americans to rally to end the worst economic crisis in generations and repair the U.S. image abroad.
"Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America," Obama said, addressing an exuberant sea of people in an inaugural speech that was optimistic but realistic about the challenges ahead.
He pledged bold and swift action to bring new life to the U.S. economy and declared to millions watching abroad: "We are ready to lead once more."
Underscoring the tough road ahead, Wall Street ushered in the new presidency with a record Inauguration Day slide amid signs the global banking crisis was far from over.
Hundreds of thousands of people erupted in cheers on Washington's National Mall grounds as they watched Obama stand with one hand raised and the other on a Bible used to swear in Abraham Lincoln in 1861, and repeat the brief oath to become the 44th U.S. president.
Beaming, the new president kissed his wife, Michelle, and his school-age daughters, Malia and Sasha. Then he turned to the crowd stretching into the distance on a cold, wintry day.
"Obama, Obama," the crowd cheered.
Obama, a Democrat, succeeded Republican George W. Bush, who served two terms and left office having plumbed record approval rating lows and leaving a legacy of two wars and economic recession.
Obama offered a sharp break from Bush, emphasizing the need for sacrifice and pledging to restore U.S. global standing, responsibly end the war in Iraq and focus less on the size of government and more on whether it works.
WALKING SOME OF THE WAY
During a triumphant ride down Pennsylvania Avenue to the White House in a heavily armored limousine, Obama and his wife thrilled wildly cheering crowds by getting out of the limo and walking part of the way.
Security personnel -- part of a contingent that numbered in the thousands -- kept close watch.
Obama has to hit the ground running given the state of the economy. The U.S. Senate confirmed several of his appointments, including Steven Chu as energy secretary and Tom Vilsack for agriculture.
The Senate Finance Committee is expected to vote on Timothy Geithner as treasury secretary on Thursday. Hillary Clinton, Obama's fierce rival for the Democratic presidential nomination, is expected to be approved as secretary of state by the full Senate on Wednesday.
But Obama first enjoyed a night of celebration, appearing with Michelle at 10 inaugural balls around Washington.
"How good lookin' is my wife?" Obama asked at their first stop, where they danced as Beyonce sang Etta James' "At Last."
"Tonight we celebrate, but tomorrow the work begins," Obama said later at a ball for military families.
The inauguration of Obama, 47, the son of a black Kenyan father and a white mother from Kansas, was steeped in symbolism for African-Americans, who for generations suffered slavery and then racial segregation that made them second-class citizens.
The jubilant mood was jolted by the collapse of Massachusetts Democratic Senator Edward Kennedy, 76, who suffered a seizure at an inaugural lunch honoring Obama. The brother of the late President John F. Kennedy was driven away by an ambulance to a hospital, where he was described as awake and answering questions.
