Unless the government's investment in banks comes with effective government oversight, the real problem is that banks will continue to have too much autonomy rather than too little.

As part of the federal government's financial bailout plan outlined over the past few days, President Bush and Treasury Secretary Henry Paulson joined an international effort to help troubled banks by buying stock in them. Their hope is that the government's investment will get the banks to lend more money. It would also assure bankers that the loans they give each other are safe (banks actually lend each other money on a regular basis). 

Then money will start flowing again between banks and to businesses that right now can't get the credit they routinely depend upon. If the plan succeeds, when the economy finally improves and the stock market goes back up, the government could sell its bank stock and probably make a profit for taxpayers.