When Hedgies Attack - Morgan Stanley Down 40% on "Rumors"

Man, these guys are relentless - I guess in a bid to stay in business they will do anything... because you can't stop a good rumor (shouting fire in a movie theater?). Remember, short selling for financials comes back Thursday so that should be interesting to see what happens - but put buying and credit default swap buying? Priceless! Morgan Stanely is now down "only" 24% after hastily putting out a press release saying: our cash infusion from Mitsubishi Financial Group is "imminent". Oh well, they'll find something new to attack it with soon - get those thinking hats on guys - we've got a whole slew of targets to play with again in 2 days.

The way things are going, these hedge funds are going to cause the golden goose to break and we could see them regulated much like mutual funds are now. We'll see - depends on how far they take this.

• Morgan Stanley (NYSE:MS - News) said on Tuesday its deal to sell up to 24.9 percent of its voting shares to Japanese bank Mitsubishi UFJ Financial Group (Tokyo:8306.T - News) was on track to close "imminently", sending its shares rebounding from earlier lows.
• "The transaction is expected to close imminently, upon expiration of the Federal Reserve five day post-approval waiting period," Morgan Stanley spokesman Mark Lake said.
• Earlier the shares had been down as much as 40 percent on speculation that Mitsubishi UFJ could withdraw from the deal. (yes, I wonder where this "speculation" came from)

Only 17 more points to go on Morgan Stanley (MS) before every tax payer become part owners. I am just waiting for the attack on Citigroup (C) - since its the biggest whale out there.

The casino continues.