"This is the sort of thing of which political revolutions are made"

Rod Dreher gets it:

"Dr. Doom speaks:

U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is "effectively insolvent," said New York University Professor Nouriel Roubini, who predicted last year's economic crisis.

"I've found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers," Roubini said at a conference in Dubai today. "If that's true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis."

More:

"The problems of Citi, Bank of America and others suggest the system is bankrupt," Roubini said. "In Europe, it's the same thing."

Meanwhile, Financial Times columnist is so angry at the mess bankers have made that he counsels, only half in jest, it would appear, that it's time to "Shoot the bankers and nationalize the banks." Get your Trotsky on, lad!

More seriously, if Obama is ultimately forced to nationalize American banks, he had damn well better throw the entire leadership class of those failed institutions out on their ear. It is revolting, the idea that those top bankers could have driven their institutions into the ditch, and still be in the driver's seat after the taxpayers, at monumental expense to themselves and their children and children's children, will have hauled them out.( THAT'S IT )

This is the sort of thing of which political revolutions are made."

I agree. This could turn very ugly if the government is seen as rewarding an incompetent and even fraudulent financial sector, while leaving average citizens out in the cold. A bad brew.