http://bettercloser.com/a-morgan-stanley-eye-view-of-the-market-orwhat-me-worry/ Bill Rice on Internet Marketing, Social Selling Mon, 06 Feb 2012 06:17:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://bettercloser.com/a-morgan-stanley-eye-view-of-the-market-orwhat-me-worry/#comment-955 keithburwell Thu, 07 Aug 2008 19:16:34 +0000 http://bettercloser.com/?p=267#comment-955 Jon--I agree with your point. I don't think it is a conspiracy as much as I believe it to be a poor choice by Paulson for PR reasons, as well an appearance of poor judgment. If we can't expect our oversight organizations to perform these kinds of actions, what then are they in place for? And, overall, is this the right approach by the Treasury? I would argue that it isn't. The public's understanding is that Wall Street cannot unravel their own derivatives and CDO's. So why are they being hired to unravel the GSE's? Jon–I agree with your point. I don’t think it is a conspiracy as much as I believe it to be a poor choice by Paulson for PR reasons, as well an appearance of poor judgment. If we can’t expect our oversight organizations to perform these kinds of actions, what then are they in place for? And, overall, is this the right approach by the Treasury? I would argue that it isn’t. The public’s understanding is that Wall Street cannot unravel their own derivatives and CDO’s. So why are they being hired to unravel the GSE’s?

]]> http://bettercloser.com/a-morgan-stanley-eye-view-of-the-market-orwhat-me-worry/#comment-954 jon Thu, 07 Aug 2008 14:40:43 +0000 http://bettercloser.com/?p=267#comment-954 You omit an important element of this story that goes directly to the assumptions - Morgan is freezing only those lines that are secured on already severely depreciated assets. IOW, folks whose homes have depreciated far enough to cause the underlying asset to be worth less than the line of credit. While it's possible that Morgan may have come into possession of material information relating to the market at large, use of such information to make trading decisions like this would be improbably short-sighted. Give Mack some credit. He's not going to go out and make Firm direction based on something Paulson told him over dinner when it is all over the news the next day. If there's collusion, which I doubt (Mack is as straight a shooter as they come), it will be sufficiently subtle that a cursory corelation of article keyword matches from the news will not uncover it. You omit an important element of this story that goes directly to the assumptions – Morgan is freezing only those lines that are secured on already severely depreciated assets. IOW, folks whose homes have depreciated far enough to cause the underlying asset to be worth less than the line of credit.
While it’s possible that Morgan may have come into possession of material information relating to the market at large, use of such information to make trading decisions like this would be improbably short-sighted. Give Mack some credit. He’s not going to go out and make Firm direction based on something Paulson told him over dinner when it is all over the news the next day. If there’s collusion, which I doubt (Mack is as straight a shooter as they come), it will be sufficiently subtle that a cursory corelation of article keyword matches from the news will not uncover it.

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