National Review, CNBC, Wall St Journal and every talking head on the tee-vee is convinced the housing bottom is here. Then why may I ask is Morgan Stanley cutting off access to HELOCs? Could it be they think that the housing free fall is nowhere near a bottom?
Morgan Stanley (NYSE:MS - News) told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.
The second largest U.S. investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the agency said, citing the person familiar with the
Now I'm no financial expert or nothing, but it stands to reason that if housing were at a bottom, Morgan Stanley wouldn't be doing this.