Re-capitalizing the banking system

It seems the Treasury and the Federal Reserve have finally hit on the only path that might be capable of stemming the tide in this financial crisis: nationalizing the banking system by infusing capital into the banks and taking an ownership interest in them. Is it just coincidence, or is that why the market started on the upside today?

By the way, I don't know why everyone keeps talking about the government taking preferred stock. If we're going to solve the problem, the taxpayer might as well get the benefit of the upside. Taking preferred stock gives the taxpayer no upside but lots of risk on the downside. At least make it convertible preferred.

Update: Well, that up market didn't last long, did it?