The UK government's fresh bank bailout wasn't able to stem the collapse in share prices. What's left to try?

News that the UK taxpayer would be paying a further, unspecified chunk of cash to ailing banks hasn't generally been greeted with great enthusiasm, not least from the markets.

Royal Bank of Scotland's announcement yesterday that it had lost between seven and eight billion pounds in 2008, prompted the government into a slightly tetchy promise of fresh aid. But whatever the intended results of the move, a nearly 70 percent fall in RBS stock certainly won't have been what they were aiming for.

To many observers, it now seems that the only option left is nationalisation. The government already owns some 70 percent of RBS, so its not that big a leap. But threats of government takeover seem to give the market a fright whenever it is considered. Prime Minister Gordon Brown's tough words yesterday coincided with further drops in stock proce for Lloyds HBOS and Barclays.

What's the solution? Should we allow banks fail and then pick up the pieces, or are we moving to large scale nationalisation of the financial industry? Are there any other options left? Let me know what you think.