Arcane Market Is Next to Face Big Credit Test

But some experts now predict that an announcement confirming the banks' nationalisation could be made within days.

The recruitment of Mr Sandler, who was approached by the Treasury in November, indicates contingency plans for Northern Rock are well advanced.

He said that his role would be to get things stabilised, to make sure the bank has proper plans in place.

The troubleshooter added that he would also be responsible for ensuring that a management team was in place at the bank.

If Mr Sandler is appointed, it will not be the first time he has been parachuted into a difficult business situation.

As chief executive of Lloyd's of London, he received credit for bringing the insurance market back from the brink of collapse. read more

Variable-rate mortgages shine as prime falls

So he might work really hard to fix the problem, but it will take time to have an effect. Given the current aggression in the economy, which is a structural characteristic built up over years by the previous government, it will take a long time and strong hands to fix the problem. All of this is the fault of John Howard, we're just lucky he's still not around.I am grateful we've got someone responsible at the helm now, someone who knows what he's doing and how to plan for the future. Thanks Kevin Rudd, thanks Wayne Swan, thanks Julia Gillard.What we are seeing now is monetary policy, doing its bit to save us from even worse pain - inflation. Imagine what that would do to the economy, your job, your standard of living etc.

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Andrew: 06 Feb 2008 3:21:53pm

Funny, Rudd didn't seem to allow Liberal the same benefit of the doubt, giving them time... read more