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Originally Posted by Texpat the sub prime crisis has had negligible impact on much else |
Its spreading into the wider economy, as house prices fall further its real impact will become more obvious.
Morgan Stanley results out already,
"March 19 (Bloomberg) -- Morgan Stanley, which reported the first loss in its history three months ago, said earnings fell 42 percent, less than analysts estimated, as investment banking fees dwindled and loan values declined.
First-quarter net income dropped to $1.55 billion, or $1.45 a share, from $2.67 billion, or $2.51, a year earlier, the second-biggest U.S. securities firm said today in a statement. The average estimate for the three-month period ended Feb. 29 was $1.01 a share, according to a Bloomberg survey of 17 analysts."
That news might give the financials momentum to continue yesterdays rally, Morgan Stanley stock is up 6% in early trading.