Rumor Mill, Mother#%^@ing Shorts Debated on FBN

by StockJockey

Monday, July 14, 2008 - 10:12 pm

The investment community is completely polarized over the issue of rumors and whether manipulation has exacerbated the decline of many formerly blue chip financial institutions.

Good markets enable rumors to drive stocks higher; perhaps you traded JDS Uniphase back in the day, long. But there is no good news in the rumor mill, and suddenly short sellers are on the defensive.

I have been on the right and wrong side of many of these firefights through the years, at the moment the only reasonable response is to cut and run, if you are long, when the rumors begin.

It is a complicated topic, but Howard Lindzon is not mincing words:

If you believe as CNBC does today (mostly for ratings) that the shortsellers are to blame, you also believe in witches, fairies and goblins.

Fannie Mae imploded (finally) because management had the GOVERNMENT as a backstop. It lead to wreckless behavior because that was how you got a bonus. Volume, not quality mattered. If the government backed every hairbrain start-up idea I had, life would be grand.

The financial system is cracking because of the reward system and the value system that has been accepted in the financial markets.

Confidence is cooked for now in the financial sector. Shoot first, cover later.

With Twitter, Wordpress, Facebook, Instant Messenger at least the little guys can talk in the backchannels and make fun of the big guys ripping us off. We can also try and protect ourselves with trusted conversations. It’s hilarious that CNBC is now telling us who is to blame when it’s them that is most guilty of cheerleading and than panic and blame.

Sad days and no end in sight based on TODAY’s action. Howard Lindzon.com

No end in sight, although I think Howard would agree we could have used more facetime with the lovely ladies of Fox, and less of him on the screen.

Who is this woman? Somebody please make an introduction.

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Deep Market Thoughts…MOTHER#%^#%*%#ing Financials AND Blame The Shortseller
Howard Lindzon

Fox Business Network
Homepage

Is It Time to Pull the Rug Out From Short-Sellers?
DealJournal
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