The problem here isn’t so much this specific case. It’s that government can never get enough once it gets going. Like Cliff May says, if you’re potentially the next President and have a socialist bent, a nationalization program is a pretty nice gift from a GOP administration. It gives you something to hide behind when you extend it.

The U.S. government is dramatically escalating its response to the financial crisis by planning to invest $250 billion in the country’s banks, forcing nine of the largest to accept a Treasury stake in what amounts to a partial nationalization.

Not offered but forced. I fear we’re embarking down a very dangerous path from which the likely next administration will not want to return.

Update: Andrew Stuttaford follows up at The Corner:

You are, of course, quite right to warn of the temptation that this may offer to politicians — and not only “socialist” politicians. This move is (unfortunately) a necessary fix, but it must be a temporary fix. Making sure that this is indeed the case is likely to be one of the major political battles in the years to come — and it will be an uphill struggle.

I don’t know how much of a figth we’ll be able to put up with the potential for a Democratic White House and filibuster-proof Democratic Congress. As for the program being temporary, the federal government doesn’t have a great track record on ditching programs once they’re no longer needed.