Geithner and Summers probably understand that there’s not enough money in the world to bail out the Bubble in the four Sand States — Arizona, Nevada, Florida, and California. But, by choosing Arizona for his big announcement, Obama signals that he doesn’t likely understand that a plan limited to people 25k underwater will mostly help people in Red States in the middle of the country (think Affordable Family Formation). Obama seems to think his plan will convert the heavily Hispanic Purple States Arizona, Nevada, and Florida to Blue forever.
Obama going to Arizona to announce a bailout plan that's not big enough to bail out Arizonans just shows that Obama doesn't grasp the situation.
If he really comprehended that Geithner and Summers wouldn't let him propose a big bailout, then he should have made a political virtue of it: go to, say, Pittsburgh and butter up the locals for slowly rebuilding their economy while other states were living high on the Housing Bubble hog, then say your plan is aimed not at the greedy but at helping out responsible folks like the Kowalskis here, who were paying off their $87,000 mortgage until the factory shut down due to the recession that was caused by the Bush Bubble.
Instead, Obama just seems lost amidst all the big numbers. I'm reminded of Randolph Churchill's tenure as Chancellor of the Exchequer in Britain (where they use dots instead of commas in big numbers), of which he later said: "I never could make out what those damn dots meant."