Investors Send Letter to Tim Geithner

From the Atlantic: Dear Treasury, Investors Can Fix the Housing Market Dear Treasury Secretary Geithner, First, kudos on your decision to stay on for the rest of your boss’s term. I know Goldman is aching to get you on board, but you’ll have plenty of time to make money when you’re in your 50s. Now that you’ve committed to another year, let’s talk for a minute about one of the most important... [more]

From the Atlantic: Dear Treasury, Investors Can Fix the Housing Market Dear Treasury Secretary Geithner, First, kudos on your decision to stay on for the rest of your boss’s term. I know Goldman is aching to get you on board, but you’ll have plenty of time to make money when you’re in your 50s. Now that you’ve committed to another year, let’s talk for a minute about one of the most important problems you face: how to fix the housing market. I’m glad to see that the Treasury has recognized two key facts about the housing market. For starters, the economic recovery won’t take off until housing has hit bottom and begun to rebound. And as far as what Washington has done to try to fix the market up to now, none of it’s working. What Isn’t Helping Let’s learn from those lessons, shall we? Lesson #1: Be Aggressive — Little Carrots Don’t Work Lesson #2: Stop Trying to Prevent Foreclosures — Mortgage Modifications Aren’t Working Lesson #3: Ignore Consumers — They Can’t Fix This Problem Lesson #4: Stop Pretending You Control Fannie and Freddie — You Don’t … Help the Private Market to Work Idea #1: No Taxes on Rental Income for Five Years Idea #2: Allow Crazy Flexibility with Rental Property Improvement Tax Deduction Idea #3: Exempt These Investors from Real Estate Taxes through 2015 Here should be Geithner's response: Dear Investors, You caused the housing bubble and the suibsequent crash by recklessly speculating on housing prices. I will not allow you to profit a second time. Which is why I am pleased to aunnoce that President Obama has just ordered the Federal Reserve to purchas 75% of all foreclosures in America and demolish them or give them to wounded veterans for free. Sincerely, Tim Geithner [less]