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SUNDAY, NOVEMBER 29, 2009 12:22 PM IST

Kass, for instance, points out that Morgan Stanley offers no data supporting chief executive Mack’s contention that short-sellers were responsible for his company’s stock price falling 44.5% in the three weeks ended on 18 September, the day short-selling was banned.

“It was the longs getting out,” says Fleckenstein. “Probably the insiders.”

Like his fellow short-sellers, Fleckenstein sees no profit in optimism. He, however, insists that it gives him no joy that his grizzly bear’s “Dow 10,000” hat is now out of date. Bloomberg

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