Wednesday, September 17, 2008

Morgan Plays the blame game

Here is something I lifted from the Barron's site and later confirmed on Fox Business News.

In a memo to employees, Morgan Stanley CEO John Mack, asserting that the plunge in Morgan stock (down as much as 39% today) is “irrational” and driven by short-sellers.

“What’s happening out there?” the memo runs. “It’s very clear to me - we’re in the midst of a market controlled by fear and rumors, (Quick Takes Pro adds - duh!) and short sellers are driving our stock down.”

I love when the good old boys talk about stock and market analysis they all pride themselves on the fundamentals. We look at earnings and sales and competition and market share. We don't look at that technical voodoo.

Oh really? Short sellers are as technical as they come. They hop on a trend and ride the heck out of it but let's assume that Wall Street fat cats really do operate on fundamentals. Why was there a declining trend in the first place? Could it be that the fundamentals were lousy and getting worse?

No, it's the short sellers.

Mack goes on to assure employees that he’s not only been personally reassuring Morgan shareholders, but has spoken with Treasury Secretary Henry Paulson and to the Securities & Exchange Commission about the stock’s decline.

Blah, blah, blahdy blah. That didn't work for Bear and Fannie and Freddie and Lehman and AIG and............

'You cannot jawbone up the price of a stock. Be a man and take the blame. Don;t worry about it because I am sure you'll get a severance package that would make a small country envious. Under your stewardship, the company fell apart. And now thousands of clerks, secretaries and other support staff are facing possible unemployment.

But it's the short sellers!


Doug said...

great points mike, these guys don't have the nuts to take responsibility for their screw ups, the short sellers, oh please, get a life, oh yeah (like you said)a severance package that would make a small country envious, amazing. go live in your house on the golf course and play 18 holes a day splitting it up with a nice juicy cheeseburger/fries/soda then drive your golf cart home and tell your wife over dinner about the 4 foot birdie putt you missed. these ceo's are a real piece of work....

Ragamuffin said...

So, the whole dire straits being the sole responsibility of the shorts-sellers -- with governments/ SECs/ stock exchanges worldwide now *finally* putting an end to their destructive forces, we're now in for stocks that only know one way - up, right?