Manifestor

Lehman: The End Game

I guess all you shorties must have covered your shorts by now!

Lehman Shorts Scared by Bear Stearns Investigation

Rumors can take many forms. It is one thing to put a blatant rumor on a message board, quite different when it is passed on to say an influential analyst or a TV reporter who may not have the time to validate it, but would be doing clients/readers injustice if he/she does not pass it on in a timely manner. Bottom line it looks like these days,with big money (hedge funds), fast computers, influential connections, removal of an uptick rule, and high volatility, it is quite easy for a network of perpetrators to manipulate specific stocks, if not whole markets. Bear Stearn paid the price. They tried on Lehman but something in the chain didn't quite help out...

Will Lehman Follow Bear into the Woods?

The article's last paragraph, to quote again,

"Amazing what the power of rumors is doing in this market. Some powerful hedge funds who have the ears of journalists must be making some huge dollars in this era, simply by betting short and starting worst case scenario rumors. Anything to make a buck... not that they'd do anything like that (ahem)" ...

summarizes it all very beautifully. I would add internet bloggers in addition to the journalists mentioned in the above quote.

Do you think the relaxation of the uptick rule for Shorts made it easier?

Fed's Strategy to Halt Debt Meltdown is Not Working

I don't see any disclosures from the author. To quote Trader Mark in seekingalpha.com/artic...

"Amazing what the power of rumors is doing in this market. Some powerful hedge funds who have the ears of journalists must be making some huge dollars in this era, simply by betting short and starting worst case scenario rumors. Anything to make a buck... not that they'd do anything like that (ahem)" ...

summarizes very well the situation here. I would add internet bloggers in addition to the journalists mentioned in the above quote.