Things are getting better so profits may be down (cont.)

As if by clockwork, Morgan Stanley released its 2Q results today, noting that narrowing credit spreads on its long-term debt accounted for "negative revenue" of $2.3 billion. They made less noise about the impact of this accountnig treatment when it reported its 4Q 2008 results last December, when they $2 billion of extra profits because their credit had gone south.

What goes around, comes around.