SCENARIOS - Ailing economy dominates Obama's domestic agenda

(Reuters) - No other item on Barack Obama's agenda for his first 100 days comes close in importance to putting the ailing economy back on a sound footing.

With no time to spare, he is already immersing himself at that effort as he prepares to take over on Tuesday from President George W. Bush.

Obama and his aides have been meeting with lawmakers about a proposed $825 billion economic stimulus package and a request to use the remaining $350 billion of a financial bailout fund.

Below are some of the challenges he faces and plans he has outlined to address them:

ECONOMIC DOWNTOWN

The U.S. economy slipped into recession in December 2007 and the 12-month slump is already the longest since the early 198Os. If it lasts more than 16 months, it will be the longest downturn since the Great Depression.

Employers have slashed 1.9 million jobs in the past four months alone. In all of 2008, 2.6 million people lost their jobs, the most since 1945.

Unemployment surged to 7.2 percent last month from 6.8 percent in November. Obama has warned the jobless rate could reach double digits.

Home foreclosures are still running at record rates and policymakers worry the housing market, at the centre of the economy's woes, may not have found a bottom yet.