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Was it just a series of bad calls or were there systemic failures that ran much deeper? We have yet to feel the full effects of this crisis in the wider economy but it is now beginning to happen and it’s going to be grim. It would nice to know whether we could have avoided at least some of this pain.

Surprise package

To cheer us all up, I was going to repeat Michael Howard’s joke from the Elite dinner, but like the former Tory leader I seem to have forgotten the punchline.

Never mind. I have some good news. A few years ago it looked as if cardboard packaging company Macfarlane Group was on the verge of folding (geddit?), but chief executive Peter Atkinson has been at the centre of a remarkable turnaround.

When I interviewed him a few weeks ago, he alluded to a deal in the offing which was finally revealed last week. Macfarlane is buying Allpoint Packaging in Middlesex for a cash consideration of £4.8m with £3.2m paid upfront.

Allpoint is already profitable and will help give Macfarlane a stronger presence in the M3/M4 corridor.

One of Atkinson’s biggest challenges when he took over was reducing Macfarlane’s enormous debt of £35m and even after this deal, it will still be under £9 million. Very good news indeed.

The wheels go round

When times are tough, people get on the bus, which is why both FirstGroup and Stagecoach have been doing relatively well of late.

Last week First reported a 6% increase in bus passengers and a 9% growth in rail in the UK.

Due to a bout of sheer laziness in getting my broken car fixed, I have been using trains and buses a lot recently and while I don't seem to have as much fun, or space, as the people in Scotrail’s on-train adverts, it is cost-effective.

Before too long, though, high fuel prices will feed through into much higher ticket prices. Not much Stagecoach or First can do about that but should the Scottish government help out in the short term and relieve some of the financial pain for Scottish travellers? I think so.

It would not cost that much, be very popular and make up for the brutal open heart surgery being performed on Edinburgh just now in aid of a totally pointless, and costly, tram project.

john.penman@sunday-times.co.uk

Explore Economics

• Pre-Budget Report 2009

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• World Economic Forum

• The Times MPC

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