The audacity of denying failure

Geithner has been a total failure.
The whole purpose of Tarp was to mitigate losses for the banks when forced to value the bundled mortgages sold in the $7.6 trillion market for Residential Mortgage Backed Securities. The Congressional Oversight Committee says that the entire banking system is at risk because this issue has not been dealt with.

Geithner has pressed on the gas pedal (gas = people’s money) with a heavy foot, oblivious of the amount of gas in the tank (the national debt). He has not fixed the engine (securitized mortgages in the banks) so we use more gas than we need to and we risk to have another breakdown. The cars’ owners took out insurance from AIG for engine troubles, and Geithner paid AIG to payoff the insurance policies without an engine change.

On March 8, 2009., I sent you the enclosed suggestion, I felt it was better than Geithner's plan. It turns out that step 1 was easy because all mortgages are filed with one clearing house bank. Tarp would be very convenient to mitigate the assessed losses.

It is my considered opinion that Michael Bloomberg or Mitt Romney would do a better job than you. I know that if you feel you cannot make a difference, you wouldn’t stay for the sake of staying ( a la G.W. Bush). I hope you realize that you are very close to the tipping point.
You don’t show any will to throw counter-punches.
You play the blame game, a sure sign of a loser.
You play the victim card, typical of blacks, inherited the economy and other guys don’t want to play.
You have let power go to your head
Your office forced Agriculture Secretary Tom Vilsack to fire Shirley Sherrod. A total abuse of power and display of cowardice not to own up to it.
You invite NBA players to play basketball on your birthday because of the power of your Office.
You appoint the chair of the failed Economic Recovery Advisory Board as chair of Council of Economic Advisers.
You are in an isolated bubble of group think, the very thing you said you would not do.
You promised hope and change. I think the greatest tipping point, for you to pack it in, is that you did not deliver on hope. There is less hopefulness now than when you began. You really shouldn’t have promised this.

With respect to change, I willing acknowledge the Healthcare change. I don’t concede much on financial reform. Emnual left it up to Geithner to get Congress to set up an emergency reserve fund. True to form, Geithner failed. Geithner did not listen to Volcker on tightening bank investment methods, so Volcker used his influence on Congress, to pass the Volcker rule. Volcker has no public office, Geithner is the Secretary of the Treasury and has full support of the President of the United States. You don’t understand the importance of gravitas. Maybe I should tell you, Geithner has no gravitas.

I don’t feel you have done anything for unemployed Americans in the past 4 weeks. Shame on you.
You are hapless and appear hopeless.

I told you so.

PS

You promised Guantanamo would be closed in one year, it wasn’t and we will be approaching two years.
You promised to cut waste in Government, you haven’t.
You promised to introduce immigration reform by your first year in office, you didn’t.
A failure in justice is providing KSM a fair trial. I don’t understand news reports suggesting that the White House is deciding the forum for KSM’s trial. The mere suggesting of meddling and delay is justice denied.

PPS

March 8, 2009 Proposal to address the securitized mortgage crisis.

The government consolidates all bundled securitized mortgages, uses a
task force of Audit firms to re-value them, then re-distributes the
actual mortgages back to eligible holders.
The banks will properly show mortgages in their long-term assets
instead of current assets when they held the securitized slices (An
improper accounting shift to enhance executive bonus's).
We will end up with a mortgage market true to capitalism.

Detailed explanation.

Securitized mortgages means mortgages were bundled then tranches of
the bundle were sold off. Every mortgage is local so this instrument
is invalid.

1)Collect all bundled mortgages.

2)Classify the Mortgages
Within each bundle is a list of mortgages.
All the mortgages must be placed on a master list.
This list must be sub-divided in the following order:
Region/city New England, Rust belt, New York, East coast,
Florida, Nevada etc
Interest rate Standard prime, escalating interest rates including subprime
Current market value divided by mortgage
Mortgagee income to mortgage amount -ability to repay

Within each region you will be able to determine three categories
Low, medium and high risk.

3)Calculate the write down.

4)Collect all holders of bundled mortgages

5)Pro-rate the write down according the portion of the bundled mortgage holding.

6)Classify holders
Banks allowed to issue Mortgages in US and those not allowed.

7)Re-distribute the gathered mortgages to the banks allowed to issue
mortgages in the US.
The US government only has jurisdiction over banks allowed to issue
mortgages in
the US. The other holders will get no mortgages, it's a risk they
took. If this is too severe offer silent partner relationships with
the banks with title.

The redistribution will have to depend on what the data looks like.
Redistribution must be as fair as possible so should be done before a
Judge (We want justice). Ideally regions would be distributed to a
regional bank but markets may have to be tranched among several banks
to fairly spread the risk