Credit 'heart attack' in intensive care

Markets remain in a poor state of health because of two major symptoms: irresponsible lending and excessive leverage. Argonaut's Oliver Russ dishes out the doctor's orders

Everything seems stacked against investors at the moment: the US teeters on the edge of recession, if it has not already fallen in. Commodity prices everywhere are rising sharply, squeezing both consumers and margins. Spillover effects are seen in rising general inflation, while equity prices slump globally. In fact, 2008 is already shaping up to be an 'annus horribilis' for almost all markets - be they property, fixed income or equities. The whole current crisis has been caused by two things: irresponsible lending and excessive leverage. While the former can stop pretty much immediately,...