He is clearly committed to action on bankruptcy reform, a
major impediment to
investment, and as noted, he is moving ahead with state
bank recapitalization and future consolidations
among the state
banks.
Among the explanations that have been put forward are the increased credibility of central
banks in controlling inflation (inflation rates remain below 3 per cent across the developed world), the low level of official interest rates in the
major economies reflecting low inflation and the continuing weakness in some economies, a glut of savings on world markets particularly sourced from the Asian region, and changes to pension fund rules in some countries which are seen as biasing
investments away from equities towards bonds.