It'll all pan out. I have no doubt in my mind that a full nationalization, or even one in which the .gov takes control of the banking system through indirect means over the long term wont take effect. This is all reactionary bullshit by the administration that is only staying afloat based on the perceived weakness of the economy. The good news is that the economy wont stay in a recession forever, in fact, will probably bottom out and start to recover in mid-late 2009. You think all this BS will fly when banks are recording regular profits again? Companies, over time, will regain their tangible common equity position and there will come a point when all strong banks will far and away exceed mandated minimums. At that point the .gov wont have a leg to stand on and the nationalization agenda will disolve.
Good points but once the .gov has it's hooks into the system you know as well as I do that they (like anyone else) aren't going to give up the control. This puts a huge amount of control in their hands, if even for a short time. They have control of a chunk of GNP and now working on the banking system which makes the rest a simple task to leverage.
I dunno even in the short term once it is done reversal is very improbable if not impossible.