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If only the confidence and liquidity were an issue then maybe the Geithner Public Private Investment Program plan might work. But says Eavis, the underlying price structure for these mortgage securities is gone with this crisis,so that the recovery in their price for banks to avoid huge losses is going to be elusive. He cites Credit Sights which estimates losses of US banks through 2010 of $250- $450 billion.
Treasury’s Got Bill Gross on Speed Dial
New York Times 06/21/2009
Geithner's Gamble Needs Speculators
Wall Street Journal 03/23/2009
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