The banking crisis is over, but the government debt crisis is just getting started, says Nick Carn, a partner at Odey Asset Management

“We’ve been a bit more upbeat on the equity market for the last few months,” he tells CNBC.

“A lot of this in our mind is the kind of echo of how bad it was.”

Looking forward, “we see a situation where a lot of the problem has been transferred to the public sector,” Carn says.

“Obviously if there’s a situation where everything is in a self-sustaining recovery and all is well, then fine. But if it isn’t, I think these government financing conditions will get a lot more difficult.”

Unfortunately, “the market is treating the vast government support for the economies and markets as a kind of costless exercise,” Carn says.

“There’s no doubt that the banking crisis is over,” he says.

“Even though we haven’t seen bad debts peak, we’re very unlikely to have a wholesale funding crisis like last year.”

“But that doesn’t mean the whole story is over,” Carn says. For example, while the U.S. and U.K. economies are well on the way to recovery, things are much tougher on continental Europe.

Others agree that the crisis is largely over.

"There was pricing of tremendous systemic risk in the marketplace at the beginning of the year," Cam Albright of Wilmington Trust told Reuters.

"A lot of that has been taken out of the market, and that risk has also come down dramatically."