Recovery hinges on government leadership

INDICATIONS that the Government is preparing to take decisive action on the refinancing of the two main banks is good news.

At current levels these prices are the stock markets’ way of saying they do not believe the banks can ever get back to normal without government backing.

With the big US private equity companies no longer offering to invest billions into the banking sector, the realisation is dawning that we as an economy are on our own, for better or for worse.