Morgan Stanley Pulls Mitsubishi Miracle Out of Hat

It's just like me betting on football...If Mitsubishi is putting money into it,stay away from it.

may be it will work

Analysts have been saying they are still strong and will not need to seek further capital until Q3 '09... and apparently the deal was never in much question. Your slanted reporting simply feeds the climate of fear and uncertainty, doesn't it?

Look back to late eighties, early nineties. Japanese firms have a very poor record at investing in the US. Sell signal on MS.

Mitsubishi has 21% of Morgan Stanley, with the price more than twice the market price? It is a bad bet for Mitsubishi, really a bad bet.

tat wus the last marker!

Yes asshat, apparently the deal was never much in question, when MUFG was going to pay $9 billion for 21% of a company worth $9 billion as of this weekend. Reeeeeeealll smarrrrrrrrrt.

Henry's claim to faim is the dot com bubble. he didn't predict the downfall he got caught in it. Cost Merrill a ton of money, still got his severence pay though, and is now banned from the industry. Shame on you Henry.

Most of this so-called economic crisis is overblown. Remember, the problem was with collaterallized mortgage obligations. Read that word...collateral. There are some physical assets that back-up the obligations. True, those assets may have fallen in value, but not to levels that people think. Home prices in the Wash DC metro area are down about 25% at the very most. So, the underlying assets are worth 24% less. Of course, when you are investing and expecting to receive 100% of your principle PLUS a 7% return each year, it's pretty painful to only get 75 cents on the dollar of your money back and NO interest on the invested funds...but it's still not the end of the world. One thing is for sure, Warren Buffet is going to be making hundreds of billions more in the next few years. Berkshire-Hathaway was sitting on billions in cash...while everyone else was making bad deals...merging companies with borrowed capital. Now, Mr. Buffett can is not only buying stocks at bargain prices...he is setting the terms of the deal. Oh, how I wold LOVE to buy preferred stock in GE that pays a guaranteed 10% a year, that is SECURED...AND has the right to convert to common stock at a later date! That man is a genius!

Genius? Just rich with cash available at the right time. I mean, I guess you could say the genius was recognizing there was something fishy with all the easy credit and skyrocketing home prices, and to choose to put cash on the sidelines for the next correction. Sure, that's bright. But lots of average people can't simply sit on the sidelines or even have the cash to invest the way he does. So I think he is just in the right place in the right time and rich enough.

Nick, the problem is with the leveraged derivatives, in this case, credit swaps, that are tied to the underlying collateral, not the real estate valuations themselves. I actually do hope this is the "bottom" but watch out for drooping in the market as the day wears on, if so, you may be seeing the initial sucker's rally that frequently unfolds, followed weeks or even months later by the real rally.

My Daddy once taught me that the only difference between banks and loan-sharks is that banks have nice buildings. Even with that, Morgan Stanley must count itself as a pack of Very LUCKY "Mothers". Seems nobody in my sinking U.S.A. reads history or cares about who REALLY won World War II, and they won't until this country becomes only the provinces of East Japan and West Germany.

Make it illegal to sell credit default swaps unless the buyer has possession of the underlying asset.

Why would anyone read anything by Henry. As another reader posted: "Henry's claim to fame is the dot com bubble. He didn't predict the downfall, he got caught in it. Cost Merrill a ton of money, but still got his severence pay and is now banned from the industry."

come on guys invest for the future our banks will not do the sub-prime mistake again

More finagling that has no real basis other than deception and greed. Like the man before me said, no more CDS (credit default swaps) AND no more CDO's. No more buying on margin, no more lending to people without solid collateral, who don't have the money to pay back. Time for Americans to live within their means instead of being greedy littte children consumers buying everything they think, but don't really need, with credit cards. And time the credit is no longer extended to them by the greedy bankers. It's all about greed.

The CEOs sleep together...that's why MS got this deal.

Sell the good old US of A to foreigners by bits and pieces. Soon enough, they will sell public assets to the far east. When will they sell the Golden Gate Bridge to China?

I wish I had some money to invest in the manufacture of wooden barrels. It appears they are about to become a popular fashion item. And since they would be made from our trees, they would be made in the USA, with my American labor.

Morgan Stanley's CEO and Chairman, John Mack isn't being replaced. Mitsubishi won't invest if that's the case.