WHILE major UK banks are being bailed out by government and taxpayers, an entire country, Iceland, is on the verge of becoming bankrupt and equity markets are fluctuating wildly, only the very brave or the very foolish have much to say about the financial future.

Here in Jersey various sources have promised everything from a ‘very bumpy ride’ to relative stability thanks to the quality and nature of the Island’s finance industry. In truth, however, we appear to be living through a global financial dislocation in which more or less anything can happen.

In spite of this, there are crumbs of comfort in our particular situation. For example, the signs are that only a small number of Islanders are in the uncomfortable, unfortunate and uncertain position of having funds tied up in failed Icelandic banks – though those with money at risk will obviously see this as a slender reason for optimism.

Fortunately, the picture is rather brighter when it comes to public investments. We have been assured by Treasury Minister Terry Le Sueur and States Treasurer Ian Black that none of the Strategic Reserve was lodged with any Icelandic financial institution.

We have also been assured that the investment strategy chosen for this vital reserve has been successful – to the extent that funds have grown substantially during the course of the year and were valued at £521 million at the end of last month.

It is, meanwhile, encouraging to learn that the reserve is spread across some 300 separate institutions to minimise exposure to risk and to be reminded that the States current account is handled by HSBC, a bank which, unlike some of its high-profile high street neighbours, has no need of government help.

But we are not yet out of the woods. In spite of today’s stock market rally and in spite of the UK rescue operation, these are still desperately uncertain and dangerous times. While some experts have shrugged off the risk of a severe downturn in Jersey, other commentators believe that we cannot escape unscathed, saying that, at the vey least, there will be job losses.

Sadly, the most that can be said with any real degree of confidence is that we must wait to see what happens.