Private Profit, Socialized Losses

Should governments bail out banks that are in danger of failing? In a real sense this is a silly question. I would restate it, “should the government bail itself out” for clarity.
Every government has its central bank. In the United States this is the Federal Reserve or the Fed. It lends money to banks and sets the interest rates for those loans. In short it is a bank for bankers. Unlike real banks however it can create money whenever there is a panic. (That is why you hear in the news about the fed lowering interest rates in order to prevent a recession) Additionally it regulates banks and banking practices. Together with the FDIC, and the treasury department, the federal reserve more or less controls banking in the United States. Most other countries have central banks as well, though often more coherently structured.
Any analysis of why this current financial crisis happened is therefore, ultimately going to point back to the Fed. Dems blame lack of regulations for the crisis (see Pelosi) while Conservatives blame regulations (See Community Reinvestment Act) that encouraged bankers to make subprime loans thus starting the housing bubble. In any case the argument is about what the Fed should do/have done, not whether a federal agency should control banking. Since a federal agency made the mistakes, it makes no sense to punish banks for it. As an aside remember that a banks job is make as many loans as possible with interest rates that accounts for risks and bring a profit. In a bubble this leads to unhealthy practices as any bank that stays out will be overtaken by its competitors.
Cries that the government is socializing a huge sector of the economy are ludicrous. It is already socialized, and has been since before the Great Depression. There is no party or major candidate that advocates reversing this and going back to the good old days of private banking and bank runs.