By ANTON TROIANOVSKI And LINGLING WEI
Morgan Stanley has told investors in its $8.8 billion real-estate fund that it may lose nearly two-thirds of its money from bum property investments, according to fund documents reviewed by The Wall Street Journal.
That would likely make it the biggest dollar loss—$5.4 billion—in the history of private-equity real-estate investing. Over the past 20 years, Morgan Stanley’s real-estate unit was one of the biggest buyers of property around the world, doing some $174 billion in deals since 1991, mostly with money raised from pension funds, college endowments and foreign investors. The losses come from investments in properties such as the European Central Bank’s Frankfurt headquarters, a big development project in Tokyo and InterContinental hotels across Europe, among others.
Daily Archives: April 13, 2010
Teacher confesses to having sex with teens, faces ten year sentence. As the father of two girls, I’d have gone ape s**t had a teacher touched either of them. But I remember being a 14-year-old boy, and if my (female) math teacher had bestowed sexual favors on me, for the life of me, all I can imagine is that I’d have been grateful as hell. What am I missing here?
Fear of drug war violence keeps tourists from Mexico. Gee, with just 20,000 dead? You might as well visit Jamaica.
Yes, 47% of all Americans pay no federal income tax, but they do pay Social Security and Medicare (which this piece of drivel calls “payroll taxes”).
The answer is that tax rates almost certainly have to rise more on the affluent than on other groups. Over the last 30 years, rates have fallen more for the wealthy, and especially the very wealthy, than for any other group. At the same time, their incomes have soared, and the incomes of most workers have grown only moderately faster than inflation.
So a much greater share of income is now concentrated at the top of distribution, while each dollar there is taxed less than it once was. It’s true that raising taxes on the rich alone can’t come close to solving the long-term budget problem. The deficit is simply too big. But if taxes are not increased for the wealthy, the country will be left with two options.
It will have to raise taxes even more than it otherwise would on everybody else. Or it will have to find deep cuts in Medicare, Social Security, military spending and the other large (generally popular) federal programs.
Or, asshat, we could cut tax rates and see revenue rise. But the desperate desire of levelers to bring down everyone forbids that approach. So let’s all suffer together.
Reader PC sends along this link. A new study finds that, instead of the $16 billion in unfunded pension liabilities Connecticut is admitting to (a year’s entire budget) the true figure is between $51 and $81 billion. No wonder Blumenthal is running away to Washington. He’s ignored this budget bomb for years and wants to be far, far away when it explodes.