Tuesday, August 5, 2008

Morgan Stanley to freeze Home Equity Lines of Credit

Bloomberg.com: Worldwide
Morgan Stanley, the second-biggest
U.S. securities firm, told thousands of clients this week that
they won't be allowed to withdraw money on their home-equity
credit lines, said a person familiar with the situation.

Most of the clients had properties that have lost value,
according to the person, who declined to be identified because
the information isn't public. The New York-based investment bank
will review home-equity lines of credit, or HELOCs, monthly from
now on, the person said yesterday.

The government goes through all these basically socialist bailouts of the big banks but the money just disappears and never comes out of those banks and flows into the rest of the system and bank credit is just not available to average people. The demonstrated incompetents and hucksters on Wall Street get away clean and the taxpayer gets boned. Not even a box of chocolates included.

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