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Richard Sachs Cycles

What will Wednesday bring?

Tuesday’s market: Citigroup up. Morgan Stanley up. Wells Fargo down.

Now comes news that Bank of America will need to raise about $35 billion in additional capital, on top of the $45 billion they’ve already received.

Will be interesting to see what happens there.

In longer term prospects, American International Group, Inc. is trading with [...]

Portfolio strategies (hedging / income)

I just submitted an Options Agreement to the operations department at the branch where my Morgan Stanley brokerage account account is held; this is a required document (along with acknowledgment that I have received the “Characteristics & Risks of Standard Options” from CBOE (the Chicago Board Options Exchange) and the OCC (Options Clearing Corporation).

Assuming [...]

Details, please!

Geithner Sets Out Sweeping Overhaul to Bank Bailout – NYTimes.com

WASHINGTON — The White House plan to rescue the nation’s financial system, announced on Tuesday by Timothy F. Geithner, the Treasury secretary, is far bigger than anyone predicted and envisions a far greater government role in markets and banks than at any time since the [...]

Panic on the Street

I knew it!

Anatomy of the Morgan Stanley Panic – WSJ.com

Two days after Lehman Brothers Holdings Inc. sought bankruptcy protection, an explosive rumor spread that another big Wall Street firm, Morgan Stanley, was on the brink of failure. The chatter on trading desks that Sept. 17 was that Deutsche Bank AG had yanked a [...]

Okay, time to dial it back …

We all know what happened yesterday, with the DJIA closing up 936 points. As happy as I was to see it, Morgan Stanley‘s 88% gain in a single day seems almost as irrational as the fears that pushed it down as low as it got.

Early news seems to be indicating that the market should [...]

YES!!!

Looks like keeping everything crossed last night did some good … now to see what happens when the market opens later on today. So far futures are indicating a broad-based up-market day, but how is that going to affect the financials, and specifically Morgan Stanley?

At least we’ve got our deal in place, and so [...]

Fingers crossed …

Fingers crossed … toes crossed … legs crossed … arms crossed … eyes crossed … sign of the cross …

MUFG Aims to Sweeten Terms of Deal for Morgan – WSJ.com

Morgan Stanley and Mitsubishi UFJ Financial Group Inc. worked Sunday to finish their $9 billion pact, as both sides pushed to keep the general [...]

Ooof, what a week …

This week was totally unreal. Over the course of the past 6 weeks, since the beginning of September, I have lost over 50% of my net-worth; almost all of which is in my retirement plan.

On the other hand, I have been averaging my cost-basis down in Morgan Stanley, picking up another 150 shares yesterday, [...]

GS, MS to become banks

This is an interesting twist. Obviously, it means that Morgan Stanley will be subject to more stringent regulation, but I wonder what it fundamentally means for the business model. This will be really interesting to following over the next days/weeks/months.

Goldman Sachs, Morgan Stanley To Be Bank Holding Companies – WSJ.com

The Federal Reserve said [...]

Big Mack Attack

Shorts face big Mack attack- Sep. 17, 2008

The Morgan Stanley chief goes on the offensive after a solid earnings report fails to halt the stock’s collapse.

FORTUNE (New York) — For Morgan Stanley and Goldman Sachs, the two remaining standalone investment banks, the world has become an ugly place.

So ugly, in fact, that [...]