US Treasury Secretary thinks that it is the “end of the credit crunch“. It is likely that he said “peak” rather than “end”, or meant that anyway. And take that message with caution: yes this may be the peak of the unwinding of the US sub-prime mortgage mess, but unwinding will continue till year end.
Remember also who he works for. His job is to calm markets not inflame them. Whether or not structural improvements will be proposed, accepted and implemented still seems unlikely. So the problem of moral hazard and market inequity will remain.
A cautious approach to asset allocation is still warranted.