Monday, April 10, 2006

Beware the Short-Bashers

Great commentary today on MSN Money by hedge fund manager Bill Fleckenstein: "Beware of Companies that Attack Short Sellers." Fleckenstein observes:
Let me repeat something I've said before: Short-sellers do not mismanage companies. They don't cause them to stuff the channel, build receivables or cook the books generically. Company managements do that. Short-sellers catch them.

The very fact that someone actually has to say that shows how short the public's memories are. And it's not just the public. A few weeks ago -- I blogged on it at the time -- I chatted with a journalist about short-selling. At one point he remarked that short-sellers had damaged companies by driving down their share prices.

I asked him to cite an example. His response: Enron.

Like I said -- memories are short.

(Hat tip: SABEW's Talking Biz News blog.)


Wall Street Versus America will be published by Penguin USA on April 6.
Click here for its listing and here for more information on the book, from my web site.


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