Exploding the Short-Seller Myth About Morgan Stanley, etc.

While no-one is likely to change their mind on this — the vilification of short-sellers is more or less complete — but let’s keep working away at it. Here is some data on the role of short-sellers in Morgan Stanley’s decline this week, specifically the presence that short-sellers had in Morgan Stanley stock. The numbers reflect the percentage of MS’s market value sold short at the time in question (according to Data Explorers):

July 2008: 7% (peak)

Sept. 1, 2008: 2%

Sept. 16, 2008: 2.8%

Are these numbers non-zero? Yes. Are they monstrously large, as conspiracy theorists are alleging? No. Are they large in historical terms? No. And had we hit new peaks in recent weeks? No.

Next question.

Related posts:

  1. Short-Seller Conspiracy Theorists
  2. Morgan Stanley: 9/11 Ate My Emails
  3. Monty Morgan Stanley
  4. Short-Selling and Insiders
  5. The Blame Game Part I: Short-Sellers are Witches