Fears of government failure to control crisis have been overcome

Equity markets have seen a strong run in the last couple of months. The question now is whether they...

Equity markets have seen a strong run in the last couple of months. The question now is whether they will continue to rise from here or was this just another bear-market rally? We have seen something of a normalisation in the US equity market since March, as some of the acute dislocations within credit markets have receded. Fears that governments had failed to get to grips with the financial crisis eased after the US authorities announced a raft of large-scale support programs in quick succession in March. The Treasury revealed its 'public-private-partnership plan' to purchase distresse...