Financial Times FT.com

They must plan their exits

By Michael Mackenzie in New York

Published: October 8 2009 17:29 | Last updated: October 8 2009 17:29

Investors have had to completely reassess their view of the role of the state in financial markets as a result of the recent crisis.

Governments and central banks have been forced to intervene to avoid a collapse in the global financial system and a possible depression. Across the globe, banking systems have been bailed out, economic stimulus packages implemented and interest rates driven to rock bottom levels. Nowhere have those programmes been more extensive than in the US and the UK.Going down: the impact of central bank buying on government bond yields

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