So that the government covers deposits to a certain point, and insures individuals and pension funds to a reasonable point (say $1 million US as of 1/01/08) including mutual funds and all pensions save those that are fixed benefit.

The rest is either written off, or held by the insuring goverment in order to create long term income to cover the cost of the intervention.

In one fell swoop, banks, power plants, all sorts of public infrastructure returned into the hands of the people.  And subject to democratic control based upon the principle of one person, one vote, not one dollar, one vote.

The income ineqaulity of the past 30 years could be corrected in one action, and the productive assets taken by the government could be used to insure continuity of government services.

Paul Krugman has been fretting about how we get that Great Compresssion that occurred during the 1937-1945 period in the US, that was brought on by massive spending on the Second World War and the demands for a greater portion of the surplus value of production.

When Krugman spoke at the launch of an populist economic policy inititative by a union backed group he has this look of "oh, shit" when he was talking about how it took a world war to get a great compression the first time around.  If there is prompt government action, that need not occur this time around.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg