Bank Nationalization

Is not only the best course we're not taking, it's apparently mandated by law. If I didn't check in with Daily Kos on a regular basis, I would have missed this because I'm not home for Moyers on Fridays, and if I were I'd probably be watching Saturday Night Lights instead.
Tell me if you've seen this elsewhere. I don't think even Krugman has mentioned it, although he must certainly know.

...They're afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we'll run screaming to the exits. And we won't rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it's foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, "We just can't let the big banks fail." That's wrong.

Well, of course there's a sticking point.

...The appropriate Federal banking agency shall, not later than 90 days after an insured depository institution becomes critically undercapitalized—

(i) appoint a receiver (or, with the concurrence of the Corporation, a conservator) for the institution; or

(ii) take such other action as the agency determines, with the concurrence of the Corporation, would better achieve the purpose of this section, after documenting why the action would better achieve that purpose.

UPDATE: Okay, it's very debatable, and debate goes on for more than 1,000 comments. Still, worth knowing there is a debate.