Obama looses control of his party.

The market can yet crash, and Chris Dodd is doing everything possible to make it happen. Friday afternoon he makes comments on Bloomberg pushing the idea that nationalization of our nations banks is a real possibility, and big bank stocks started pushing to new lows. Remember, bank nationalization is a complete reversal of a free market economy. Haven't they learned anything from the lessons of Fannie and Freddie? If large bank stocks suddenly drop to zero, which is one of many effects of nationalization, then the American tax payers,are suddenly on hook for all they owe. We may owe money to some bank investors as well, possibly bond holders and maybe even preferred stock holders. Our accounts go from being insured by the government, to being deposits with the government.

I was always worried that congress would try to take over and nationalize the oil companies. Any nationalization is bad. Bank of America is protesting that they are profitable and have plenty of assets, and are in no danger of default. Does any of that matter to Chris Dodd? The last time there was a nationalization of an industry, and it railroads. It was such an unqualified disaster that nine months later all politicians were of a single mind when they dumped the companies back on the public. In nine months trains had gone from never running on time to never running.

The likely scenario would be nationalizing some of the larger banks but either way, until the administration says there will be no nationalization of banks, the stock market is in big trouble. If one happens, we could be looking at a drop of thousands on the Dow. This market was, in my opinion, ready to bottom, and it still could, but it will be held hostage by this controversy, and can only go down until someone like Geithner or Obama step up.

If we loose thousands of points in one day, it will have a shot of being the worst percentage down day in market history.

In the mean time, rumors that Rahm Emanual pushed through punitive measures toward wall street behind Obama's back, measure's that Obama was not entirely supportive of. Between Chris Dodd running the economy and Rahm E. running the White House, the nation may be at a precipice. It's time for Obama to take control of things. There needs to be a message this weekend that is very clear. No confusion nor vague generalizations to provide cover for an administration with several chiefs. That disqualifies Geithner as the messenger, it needs to come from Obama himself. No bank nationalizations. It must be taken completely off the table.

If that doesn't happen this weekend... watch out monday.