Promod Radhakrishnan

PPIP Watch: Banks as Bidders and Sellers...Hmm, Remember Enron?

Nice post - i do agree there's enough and more skin-in-the-game from the government/treasury and the plan does have a risk factor of collusion and flawed pricve discovery. But putting this in context -a) institutions badly mauled by the crisis
b) increased share holder vigil
c) a new set of regulations forcing higher capital cushion, stronger liquidity norms etc
do we really think either the government or the banks will let this happen in the near term? More over, the relaxation of mark-to-market accounting norms reduce the incentive associate with such devious tactics.

Also, the bigger question - other than letting the liquidity crisis play out slowly (which would have severe unemployment consequences), what are the alternate options to unfreeze liquidity?