Fighting Yoda

When Morgan Stanley Almost Died

Morgan Stanley etc were saved by the Fed. - all kinds of money and was poured into the system to prevent the collapse. So the deals that Mack may not at all have been significant to prevent the failure. Fed has essentially backstopped the market along with these new accounting rules, take money at zero APR and speculate. Well for now the system has been saved but the seeds have been sown for a even bigger collapse in the near future. The problem is bad debt - you can pretend it will get paid - but the reality is it can not get repaid - no one has the ability repay - CREs will come due in the near future, FHA is on the brink.