Morgan Stanley to Give Up 5 San Francisco Towers Bought at Peak [ Bloomers ]
Morgan Stanley “bought” (mortgaged- and with all their money too, tsk, tsk) 5 office buildings in San Fran two years ago for more than eight BILLION dollars. Let’s see, that would be waaaaay back in 2007… after the bubble peaked.
MS is actually current on the loan and is not in foreclosure. They are simply “walking away” (MS prefers the term “orderly transfer” so they can feel better about themselves) because the buildings are worth less than the amount owed.
I think more and more homedebtors, upside down in their own homes, after they hear about Morgan Stanley’s very own “orderly transfer” will turn to their significant other and say “Hon, maybe we would should get out from under and arrange our very own ‘orderly transfer’. After all, if Morgan Stanley thinks it’s a good idea…”
It’s just a business decision, right, MS? Lookie-heah, if a million contracts get broken every day how can contracts be considered sacrosanct?
If they are, then obviously this only applies to suckers homedebtors in the Fox News and CNBS (a.k.a. Minstry of Propoganda) fantasy space, where corporations get a free pass to do as they please and applauded for their ‘boldness’; but if you and I act in consort we are considered by them to be douchebags.
“A credit default swap is like a passenger on the Titanic selling insurance on the Titanic. If the guarantor drowns, who pays the policy holder?” -Nassim Taleb