Mish concludes:
A merger of Wachovia and Morgan Stanley would be a merger of the weak with the pathetically weak. Conditions are such that it is very difficult to tell who is who.Along the way, in his analysis, Mish rips the latest earnings statement of Morgan Stanley, claiming it took advantage of "a financial loophole to write off the value of its debt."While both companies have a questionable future, a merger has a certain future: a complete collapse of the combined entity. I doubt this merger takes place.
Mish claims he's been told that in an unsuccessful attempt Tuesday evening to discuss a merger of Morgan Stanley with Citigroup, Mr. Mack (CEO, Morgan Stanley) told Mr. Pandit (CEO, Citigroup): "We need a merger partner or we’re not going to make it."