Govt wealth warning: bank debt a toxic but compelling prospect

We all know you should not smoke and should only drink in moderation.

Whereas some people live a temperate life, others do both to excess and die at the same age because of genetics. It is not fair, but it is how things are; what is OK for one person is toxic for another, even in small doses. It is with a growing sense of perplexity we have watched governments and managers struggling with the idea there is some kind of quick fix for our indulgence and that the toxic debt that is the financial equivalent of beer and cigarettes has had no real effect on banks and consumers. The real question is: how toxic have things become for our banks? In order to see ...