Nationalize the banking system

[Dave Kennedy]

So there has been a lot of talk lately about nationalizing some of these big banks. The govt then came out and said its not going to happen and they have no plans to take such action.

I was just watching a local news station with a panel of economists and a few of them agreed saying "in 18 months we the people are going to own several of the nations biggest banks." They don't agree with the action but they say it is inevitable.

If this case what really happens in this situation? Why is it bad, why is it good? I understand the process but don't understand the long term effect.

Obviously any shareholders of these banks will be totally screwed and their shares will be essentially worth nothing. The stock market will also take huge hits when/if a bank is purchased by the Govt.

Is it just the fact that people don't like the control and regulations the government could impose once they take these banks over? What is the biggest draw back?