And many still think were in the last stages of this credit crisis. News is only getting worse. How many people owning houses are now going to short sell their houses just to get out of the financial mess they are in. On top of that there now freezing HELOC, not good at all. Reuters Morgan Stanley to freeze home-equity credit lines: report Wednesday August 6, 1:24 am ET (Reuters) - Morgan Stanley (NYSE:MS - News) told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified. The second largest U.S. investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the agency said, citing the person familiar with the matter. Morgan Stanley did not immediately return a call seeking comment. In June, the investment bank said its quarterly earnings dropped 57 percent on weak trading, investment losses and a slowdown in investment banking, even after it realized $1.43 billion in one-time gains. Shares of Morgan Stanley closed at $43.20 Tuesday on the New York Stock Exchange.