You've got to love their timing - almost as if they got an order from the Democrats to do an editorial on why it will be necessary to nationalize the banks.

Why nationalize, asks the New York Times? Because they're (you guessed it) TOO BIG TO FAIL!

Rescue measures have so far prevented a system-wide meltdown, but they have not reversed the downward slide or revived bank lending. That will not happen until investors have a firm grasp of the losses that everyone knows are on banks' books - but that the banks are loath to acknowledge.

Done right, a takeover would be a once-and-for-all fix. The government would examine the banks' holdings to get a realistic assessment of the toxic assets that are crippling the banks - and how much capital each bank needs, not only to survive but to begin lending again.

Institutions that are healthy enough to raise the needed capital from private investors would remain in shareholders' hands. Those that are too weak would be taken over by the government and recapitalized with taxpayer money. The government would be in charge of restructuring those banks' finances and operations. Current management would be fired - an appropriate end for executives whose failures have brought their companies and the country to this dark and dangerous point. Because taxpayers would be the owners, they would benefit from the gains to be had when the banks recover.