Morgan Stanley cut bonuses an average 50 percent

None whatsoever and for technie - no effect on rents and your imputed rent calc... techie.... come on now.... wheres' the tirade? 18x...

i agree this all has an impact. i think the layoffs are even greater. so, on average a guy in one of the groups who made $2mm last year is stil making $1mm today - probably can still service his apt payments from this and all of his big pay days over the last 5 years and has no need to move quickly - may even still look to be abuyer when they feel prices fall enough, just for a smaller unit....sad really that they get bailed out and people are still goign to make that kind of money. something aint right...

"imputed rent calc"

tecchie doesn't know what that is. Or opportunity cost. Or how foreign ETF's and mutual funds invest.

He won't tell us anything about his recent "Manhattan purchase," ergo it doesn't exist. Because he lives in Long Island City.

Nothing calculation will allow a price-to-rent ratio of 18x. Owners' equivalent rent yes, but not the price-to-rent ratio.

And BTW, plenty more market rentals coming online. Larry Silverstein changed the plans for Silver Towers on the Far West Side, 1,300 new rental units coming online next year.

Not to mention all the other new development that no one is around to buy. Read the MS story - bonuses are in restricted stock, not cash. And there's a clawback provision. How likely would you be to invest vast amounts in real estate this year if you know that 2 years from now your employer can take it back from you?

Stan O'Neal - who's that knocking at your door?

Nothing calculation = No calculation.

Ooops!

though, everythign i said may be meaningless if all bonuses are stock not cash...any idea? i saw that the few officers mentioned are stock, but does that mean for all employees?

for old times sake... "burn... mother----er, burn... we don't need no water let the m-er... BURN"

Where's spunky?

MER, C? How are they doing, old friend?

Clawback is a red herring. It will never be utilized barring the most egregious display of arrogance.

And yet the MS/ML bonuses are still surprisingly high. My douche-bag bank is saying zero for front and support. And I'm not even at Wachovia.

kgg, agreed on the clawback.

Also agreed that the MS numbers (and the GS numbers) seem to be quite high given the economy. I've generally been bearish and these numbers are better than what I was expecting. I agree with uesguy above that this may actually help provide some stability.

I think I read that the MS bonuses are the same level as 2005. What I heard from one MD at MS though, is that they are REALLY worried about 2009 bonuses.

"It will never be utilized barring the most egregious display of arrogance"

You mean like what we're seeing now? Or like Dick Fuld? Stan O'Neal? "Masters of the Universe."

Masters of the Pyramid Scheme.

"these numbers are better than what I was expecting"

Okay. 50% cut in bonuses to staff 20% smaller. Paid in restricted stock that doesn't vest for year. Or, sometimes, in toxic assets.

Yes. Ploughed right back into real estate.

And yes, 2009 will be far worse. Small staff, no leverage, sideways market, and negative profit. 2008's includes the first half of the year, which was profitable.

steve - other than the top execs who it listed as getting stock, do you know that all employeees bonuses are in stock this year or is that speculation on your part? just curious. no doubt they expect 2009 to be worse - whether stock or cash, the 50% level is still unreal to me.

Clawback is a huge red herring meant to satisfy the gov. The toxic assets may actually work out in the employees favor over the next few years.

I know firsthand the bonuses are not in all stock. Total lies if anyone says that.

"The toxic assets may actually work out in the employees favor over the next few years."

If they don't sell them first.

No one said "all stock" - large stock component.

At least for the midlevels (associates and VPs), they can't be both down 50% and at 2005 levels. Bonuses rose from 2005 to 2007, but nowhere near doubling.