Wednesday, October 8: The financial structure has changed. Looking into the black hole

The week Wall Street capitulated

“The financial structure has changed, ending credit-led financing and disintermediation, and into a funded model”

Wednesday, October 8: The US Treasury hints it is considering injecting capital into banks

For the first time, US Treasury Secretary Paulson opens up the possibility of government directly injecting capital into financial institutions. As ever, it is all talk and no action. The tailspin continues… The day started with meetings with two US mortgage market specialists.