Obama becomes U.S. president, turns page on Bush years

By Steve Holland and Caren Bohan

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, one hand 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 crowds 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 lows in approval ratings and leaving a legacy of two wars and an economy in 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 a part of the way on foot.

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 and the U.S. Senate confirmed several key Obama 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 and his choice as secretary of state, is expected to be approved by the full Senate on Wednesday.

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.