Dan Skelly: "We still don't see an economic contraction"

The first part of the bear was this inflation and rates and derating in the [P/E] multiple.  And we've seen that play out.  Multiples in the S&P are off 20% or so year-to-date.  The second part of it, in our view, is the earnings hit.  And so we have seen, obviously, blowups in some of those most acutely sensitive to over-earning in the Covid period - so the retailers of the world who over-ordered inventory and maybe have a little bit of skew to that lower-end income scale who's getting particularly impacted by food and gas today.  So we've seen that.  We think that that basically broadens out a bit more to some other parts of the market.  That being said, we see this being limited to a multiple and earnings hit.  So, yes, there's probably a volatile summer ahead of us, but we still don't see an economic contraction.  And with that, you're probably going to be limited to 5, 10% further downside [in the stock market.]

~ Dan Skelly, head of market research & strategy, Morgan Stanley Wealth Management, Bloomberg TV interview, June 10, 2022

Carla Harris on venture capital funds going to women and minorities

There was about $3.8 billion that were allocated to black and hispanic founders last year [2020].  That number was $11 billion this year [2021].  Now the amount of VC dollars distributed also skyrocketed, and with respect to women, while the percentage was down, the absolute amount went up.  It was $3.8 billion and change that was allocated to female founders last year [2020].  That number was over $6 billion this year [2021]: only 2%, but the absolute dollars is something we need to pay attention to.  Slowly but surely, it's starting to penetrate.

~ Carla Harris, Morgan Stanley senior client advisor, Bloomberg TV interview, February 1, 2022

Mike Wilson on money supply growth on the risk of inflation

It’s fair to say we have never observed money supply growth as high as it is today. The Fed may not be in control of Money Supply growth which means they won’t have control of inflation either, if it gets going.

~ Mike Wilson, Morgan Stanley chief U.S. equity strategist, "The ballooning money supply may be the key to unlocking inflation in the U.S.," CNBC.com, August 5, 2020

Morgan Stanley strategist Michael Wilson: "It's early in a new economic cycle and bull market"

We maintain our positive view for U.S. equity markets because it’s early in a new economic cycle and bull market. Last week’s correction was overdue and likely has another 5-7% downside. It’s healthy and we are buyers into weakness with a small/mid-cap and cyclical tilt.

~ Michael Wilson, Morgan Stanley equity strategist, "Stocks could fall a further 7% after last week’s correction. But here’s why Morgan Stanley says that’s 'healthy,'" MarketWatch.com, June 15, 2020

Morgan Stanley economists on the V-shaped recovery

The V-shaped recovery in markets is foreshadowing a V-shaped recovery in the economy and earnings. It’s also following the 2009 pattern almost identically in many ways.

~ Morgan Stanley economists, "Stocks could fall a further 7% after last week’s correction. But here’s why Morgan Stanley says that’s 'healthy,'" MarketWatch.com, June 15, 2020

Kyle Bass: Goldman Sachs and Morgan Stanley would've failed without Fed bailouts

I think they made a really significant error during the crisis.  I don't think that there was enough of a flush of bad activity and bad investing back then, and the point is when the banks and investment banks came to the Fed and wanted the Fed to bail them out, the taxpayers ended up bailing out the bankers.  Goldman Sachs exists today because they were made a bank holding company and so does Morgan Stanley.  Back then, I don't think they would've made it if not for the Fed stepping in.

~ Kyle Bass, Wall Street Week interview, 6:29 mark, posted January 3, 2016

Andrew Horowitz on bailout money going towards year-end bonuses

As if the economic bailout by U.S. taxpayers isn't enough to make you sick to your stomach, new information has come to light that several banks are planning to pay billions of dollars in year-end bonuses from the bailout funds they received. Investigations are beginning into the nine banks that took in the first $125 billion -- the same $125 billion that was supposed to be used to unclog the credit system which was preventing banks from providing much needed funds for individuals and businesses.

There are many feathers in a ruffle over this and New York Attorney General Andrew Cuomo and several congressmen are furious that over $20 billion has already been earmarked as bonus funds for management and employees. Unbelievably, that is just the estimates from Goldman Sachs, Morgan Stanley and Merrill Lynch. There are six more banks that are also working on similar heists.

~ Andrew Horowitz, "$50 billion of bailout going to employee bonuses," MSN.Money Blog, October 31, 2008

Ken Heebner when asked if the latest government actions were specifically designed to bail out Goldman Sachs and Morgan Stanley

I wouldn't use the words bail out. These are healthy companies. I'd call what the government did protection from short sellers.

They are bastions of financial strength. They have no problems with their balance sheets, and Morgan Stanley just reported a quarterly profit of more than $1 billion. Yet early in the day (of September 18), Morgan Stanley's stock got as low as $11.70.

~ Ken Heebner, as appeared on CNBC, September 18, 2008