Martin Wolf writes about the next stage of the recovery
It's all about the global synchronized recovery right now but whether it lasts will depend on how companies and governments act now.
Martin Wolf in the FT embraces the improvement but warns it won't last if companies don't delever and invest.
The problem, he says is that companies (and executives) are rewarded for borrowing and buying-back shares.
" A crucial change is elimination of favourable tax treatment of debt. Stock-related pay encourages excessive borrowing: its treatment by the tax system must be reconsidered. More equity capital would make banks less fragile," he writes.
