Morgan Stanley Also a Loser This Quarter

Morgan Stanley reported a $2.2 billion fourth-quarter loss, wider than most analysts expectations, yet narrower than the same quarter a year ago.  Morgan joins Goldman in proving that even with massive stimulus from the Fed and Treasury, it's impossible to make money if nobody is willing to trade, invest, or pay for advice.  

Once again, even that $2.2 billion loss is extremely optimistic, as revenue was positively impacted by a $2.7 billion gain associated with the widening of Morgan Stanley's credit spreads.  In summary:

•  The Fed has lowered interest rates to zero
•  The Fed is lending the banks money versus crap collateral
•  The Treasury handed Morgan $10 billion
•  The FDIC guaranteed its debt
  
• Morgan was able to book $2.7 billion in profit from the deterioration in its credit worthiness
• The company still lost over $2 billion

Anyone else wonder why the Fed is terrified?