Rumor Mongering About the Short Selling Conspiracy

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Sorkin is on Team Jamie. In his weekly column in the Times business section, Andrew Ross Sorkin sounds the alarm against the rumor-mongers attacked by JP Morgan Chase chief executive Jamie Dimon last night. But it's not just spreading rumors that's bothering Dimon, Sorkin and Lehman Brother's chief Dick Fuld. They believe that there are speculators--short sellers at hedge funds--who have knowingly been spreading false rumors to create self-fulfilling prophecies that damage Wall Street firms.
As Felix Salmon points out over in Portfolio, the amazing thing is how vague and unsubstantiated these accusations against the shorts really are. In fact, they bear all the marks of baseless, fear-mongering rumors that they intend to indict.
"Where there's smoke, there's fire," Dimon said. It's hard to think of a better motto for a rumor monger.

Psst! Hear the Rumor of the Day?
[New York Times]
Market Rumors: Inevitable [Portfolio]

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