The US government joined with the Europeans to announce that banks will be forced to take on the government as a partner. Governments will presumably encourage banks to make good use of the funds they inject in exchange for an equity stake. And thus the irony: we got into this mess in part because government-sponsored banks (Freddie and Fannie) were "encouraged" to make ever-more-creative loans to those who couldn't afford or qualify for conventional loans, and now Washington is going to be encouraging banks to lend money they might not otherwise feel comfortable lending.
There is no substitute for the free market's ability to efficiently allocate resources. Government is probably coming to the rescue of the banks at just about the time that a rescue is no longer necessary. Government meddling in banks' affairs will likely retard the return to normalcy. This is not a reason to worry about a deeper recession, but rather a reason to not expect an economic boom any time soon.
No matter who wins this election, government has already won this round against the private sector.