By Justin McHenry

Along with its earnings release last week, investment banking firm Morgan Stanley announced that its Discover unit would be spun off into its own public company.  With the spinoff to be completed by the third quarter of 2007, all four of the major credit card companies–Visa, MasterCard, American Express and Discover–will be open to public investors by the end of next year. American Express has long been a public company, MasterCard had its IPO this year and now Visa and Discover will follow suit in 2007. (Technically, Discover was already part of a public company in Morgan Stanley, but the spinoff will allow investors to buy into just the credit card business.)

Morgan Stanley CEO John Mack had committed to Discover as a part of the firm upon taking the top job in 2005, but says with Morgan Stanley back on firmer footing, the spinoff offers better shareholder value than is possible by keeping Discover in the fold.

A ThinkGlink reader is thinking of buying a new home on a golf course. The future of the course is in question and the buyer wonders how this will change the properties value. Ilyce gives him a strategy for moving forward on his offer.

A ThinkGlink reader would like to refinance her home because her adjustable rate mortgage has just increased. Unfortunately, in addition to her ARM increasing, she is also going through a divorce and her home is on the market. Ilyce explains that banks will not refinance when a home is on the market.

A ThinkGlink reader is thinking about rehabing his bathroom and is wondering if replacing a bathtub with a shower will decrease his home’s value. Ilyce helps this reader think through his rehab project.

A ThinkGlink reader recently bought a home that now has water in the basement. His home inspector has mentioned poor gutters and a grade problem. Ilyce and Sam feel that his home owner will have little success in getting any money from the seller.

I’m still speechless…anyone that knows me “in the flesh” will tell you that my being speechless is not only highly improbable, but also impossible…but, I am…sort of…
This morning, my boss (VP) called me to his office and, there were a couple other people there looking…

A ThinkGlink reader is self-employed and trying to refinance a piece of rental property he owns. He is only being quoted very high interest rates. Ilyce suggests refinancing the home he lives in or trying to work with community banks.

…((sigh)) YES!…
they want all expenses for 2006 to be tallied in 2006 (obvious!)…so, one of our PM’s sent a message to the whole unit regarding this, so now I’m SWAMPED with things that need processing for payment before tomorrow (when our PM leaves!) …it’s 4:40 and, I don’t…

A ThinkGlink reader is recently divorced and trying to figure out what his tax bill will look like. Ilyce explains that he will not have to pay capital gains on the sale of his home, but he will have to pay increased income tax on any alimony he recieves.

well, we thought we were done with the toy sale…but, we’ve had 3 new orders placed ….they all want them for tomorrow or Friday, of course!…They’re small orders, thankfully, but, still, it’ll be some extra cash!…

Did I already complain about December being a tough month?