Today, Timothy Geithner garners much attention. Initially, when introduced on the national scene, people pondered; "Who is he?" The former President of the Federal Reserve Bank of New York has an impeccable résumé. Some say his record speaks for itself. Average Americans might have admire his ascendancy. Taxpayers could have appreciated that a man of his age would wish to manage the complexity of the United States coffers. Countless may have considered the enormous challenge he accepted; yet, not comprehend, for Secretary Geithner, this may have been the plan.
Early on, Treasury Secretary Timothy F. Geithner had his sights set high. As a child, born to an affluent, and influential family, he learned that all he desired could be his. He saw the potential for power in political prospects. The practicality of a profitable purpose also was apparent to Tim. When a lad, there was no reason for Timothy to reflect on the concrete pavements beneath his feet. Geithner would not have supposed he would work as a laborer. Nor had he likely seen himself as one among the swarms of ordinary citizens. His personal history may have helped him to know, he would not have to pound the streets to seek pennies for his pocket. Unconventional as his life had been, Timothy Geithner might have imagined as others did; he was destined for greatness.
On Wednesday I wrote a piece on Huffington Post and another here at Open Left talking about the centrality of fixing the foreclosure crisis to any recovery from the economic meltdown. Since the toxic assets at the center of the meltdown are based on mortgages that are entering foreclosure at a rate of one every 13 seconds, we have to address foreclosure as a part of getting America back on its feet.
The Homeowner Affordability and Stabilization Plan (HASP), announced in Phoenix on Wednesday by President Obama, which will help up to an estimated 9 million families, is a good first step – and the first serious effort by the Federal government to confront the challenge. But just because there was an announcement does not lessen the urgency of the problem. We are still in a situation where four families every minute enter the foreclosure process. We believe there must be a moratorium on foreclosures until HASP is fully implemented.
In the extended entry I give a report back on ACORN's actions on Thursday to create a sense of urgency around this crisis and help some families stay in their homes.
If you were not one of the 2 million people watching the inauguration on the Mall in Washington, you could watch the spectacle on any number of television channels. Flipping between ABC, CBS, NBC and PBS would have yielded different commentary but largely the same mood: euphoria, awe at the magnitude of electing the first African-American president, and somber urgency about what confronts our financial system and the world. Yet, even as Obama warned of a difficult road, the crowds were wildly enthusiastic, and millions were moved. Main Street has turned a corner.
But if you had turned on CNBC, you would have seen a different world. Wall Street was in free-fall, with the worst day for bank stocks ever. Some major banks, Citigroup, Bank of America and State Street especially, lost between 25% and 60% of their market value. Similar sell-offs occurred in British bank stocks, with the Royal Bank of Scotland particularly eviscerated. Wall Street pessimism was terrible a few months ago, and has now transcended pessimism and evolved into manic nihilism.
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