Who Will be the Next Credit Crunch Victim?
There is no telling which company or business empire will follow the footsteps of Lehman Brothers and Merril Lynch. While the latter may have been saved by one last ditch effort buyer, there are a couple of names being wooed as the next one to fall. One notable name mentioned was Morgan Stanley, a known figure in the world and that is surely not the last one to be heard.
Rumor has it that Morgan Stanley is now in talks with Chinese businessmen regarding a potential sale of the company. Is the U.S. falling and the Chinamen rising? If any of you were reading the Bible, this may be a prophecy that is being fulfilled.
While the U.S. markets continue to falter, other nations are confident that they can weather this financial crisis storm. Why? It is one of two things:
1. They are trying to keep local investors calm. To get business you have to assure your potential investors that your economy is stable and that you have a contingency plan just in case the decline in the U.S. market falls. Common sense tells us, which person in his right mind would shell out investments in a faltering nation?
2. They have redirected their investments and ties with other tiger nation. Asia is a dark horse in the economic scene. While China has been hit for its unorthodox manner of living and eco-friendly ways, it is apparent that they are the nation in the spotlight. Mention one nation that has not talked to them about tie-ups and you may be surprised.
Europe is consistently quiet. They are not mentioned among the countries undergoing economic stress. The United States is in the limelight and for sure they will be until the year ends.
But the real guess today is who will follow the footsteps of the lending giants? Your guess is as good as mine.
Morgan Stanley, the securities firm forced into merger talks by a plunging stock price, is continuing negotiations after the government announced a bailout plan aimed at stabilizing financial companies, a person close to the bank said.
The firm, led by CEO John Mack, is still discussing a potential deal with Wachovia Corp. and weighing an investment from China Investment Corp., the state-controlled fund that already owns 9.9 percent of Morgan Stanley.
(Source) Houston Chronicle
[...] financial crisis we are experiencing today is something I liken to biological warfare. For the record, biological [...]