Thursday, October 9: "Somehow you need to get lending going again." It feels like capitulation
There was no going back to those halcyon days when the financial system had the capacity to resolve issues itself, perhaps with the aid of a few monetary tweaks by the central banks.
"Enough! Just sell my stock, sell me anything with credit risk and buy T-bills – at least I know I’ll get my money back"
Thursday October 9: Christopher Cox, chair of the SEC: urged Congress and Treasury to regulate the credit derivative market
As the bandwagon to clampdown on credit derivatives gathers pace, Christopher Cox, chair of the SEC, says that Congress should act to allow the regulation of the credit default swap market. Meanwhile Paul Krugman – soon to be a Nobel laureate – calls on the Treasury to use the powers that they did not ask for but which Congress gave it anyway and recapitalize the banking system... At the end of a momentous and at times frightening week, Euromoney talked to a credit trading head at a US bank. "Throughout this crisis I’ve avoided use of the word capitulation," he said.