Take the Nationalization Express

For your daily dose of terror, go to Albert Bozzo at CNBC.com.

"I don't wish to spread alarm on the line people but the big issue confronting the market is I'm afraid the health and sustainability of Morgan Stanley and Goldman Sachs." Hugh Hendry, Partner and CIO at Eclectica, told CNBC early Friday. "It is unimaginable that they can be allowed to go, I suspect that they will be nationalized at some point today or over the weekend," he added.

Just one guy's opinion, but it's not impossible.

The Emergency Economic Stabilization Act of 2008's vague language gives Paulson almost unlimited power to intervene and leaves much up to interpretation.

In that context, some say cash injections could apply to non-depository institutuons like investment banks, insurers and hedge funds.

"He's free to just strike deals, to do special deals," says Lawrence White, a former White House economist and savings and loan regulator, who adds Congress was aware of the powers being given to Paulson and thus pressed hard for an oversight board.

This weekend will be key. The New York Times previews some of the discussions between the U.S. and the European powers. No one is ruling out the "special deals" that would let the Treasury take over banks.