Sunday, September 21, 2008

Sept-22 An account in Morgan Stanley or Goldman Sachs

You will probably have an personal banking account provided by Morgan Stanley or Goldman Sachs, so that they can use your cash as the backbone of their gambling game. Sounds funny but this gonna be the reality in the near future.

From now on, there will be NO pure investment banks on this planet. The world did experiments on investment banks for nearly a century and then this crisis proves this kind of bank cannot stand alone.

To be IBs don't not have any assets except for their office building and staff. The numbers and their holdings are barely virtual. They real money they can touch is mainly used to buy lunch. Finally, they find this may not work so from now on they want money from customers.

How this affect the stock price for GS and MS? No doubt, the US government won't let them down this time, but they won't be the next hot spot of market. For example, when you find the food price begins to surge, you may fine how smart Buffet and Coca Cola are, as they bought enough shares in the food and beverage market.

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