Morgan Stanley analysts actually approve of what Washington is doing

Other bankers may be miserable about the way the bailout is going, but Morgan Stanley analysts gave Washington the thumbs up yesterday in a note they wrote about their field trip down to the swamp.

The note managed to put a positive spin on the resounding criticisms of the new administration´s lack of detail and direction. "Washington's administration, regulators, and lawmakers are being nimble," the note said. "This is important. It shows they are willing to try different approaches until they hit on one that works."

It went on to list examples of the government´s versatility in a section with a heading called "Investment Case." This seemed just a tad ironic and left us wondering whether Morgan Stanley was suggesting that the best place to invest right now is in the US government.

Nevertheless, with the ranks of executives looking to return their Tarp money growing while bank stocks continue to plummet on fears of a government takeover, Washington needs a little cheering on. Thanks, Wall Street.