TARP alternative. Why continue spending trillions?

I've found myself interested in hearing the alternative solutions that are put forward, particularly since defenders of programs such as TARP and more frequently the Stimulus argue that the other side simply hasn't put forward any solutions so these are our best options by default. This is an interesting proposal by Larry Kudlow, a bit technical but a clear description, that uses an upward sloping treasury yield curve and a mark-to-market reform. I particularly like this one point that Kudlow makes:

You could even have a two-tiered disclosure process: Accounting purists could be satisfied with a full mark-to-market disclosure, while regulators could forbear capital-standard rules that shouldn’t apply during this period of severe distress. As a result, banks would be in better shape to pass the Treasury’s new stress test and wouldn’t need new TARP capital-injections that further extend taxpayer liabilities.

This is nice because, as he points out, it satisfies both parties as there is still, if not more, transparency. So if the mark-to-market evaluation makes a company look less attractive than another, investors can choose to stay out.

A Shotgun-Marriage Proposal by Larry Kudlow