China To The Rescue
Not like they don't hold enough dollars already. Bloomberg (12.19.07):
"Morgan Stanley wrote down its subprime-infected mortgage holdings by a greater-than-expected $9.4 billion and received a $5 billion cash infusion from state- controlled China Investment Corp." Morgan Stanley Posts Loss, Sells Stake to ChinaTalk about underestimating. At the beginning of November, Morgan Stanley was talking about at least $3.7 billion, and maybe as much as $6 billion. Now it's up to $9.4 billion? And they also have $8.3 billion supposedly insured by ACA? These guys are in big trouble.