May you live in interesting times

Morgan Stanley and Goldman Sachs are highly levered public companies whose managements' statements should be viewed with tremendous skepticism given how wildly inaccurate the statements of their counterparts at Bear Stearns, Lehman Brothers and Merrill Lynch were. The reason their stocks are under attack is because they are attackable. Lever to 20-30:1 and you've put yourself at tremendous risk. Less than a multiple point of valuation error and you're insolvent especially when you've improperly funded long lived assets with short term liabilities.

Goldman Sachs operated for years, as Lazard continues to this day, as a private partnership and perhaps all the former partners will buy the company back at $50. I fully suspect many of the partners took their IPO proceeds bought coastal properties in 1999 and sold them in 2006. They are that smart so don't be mad that they have more than you. Caught in the middle are people who hopefully realized the gravy days wouldn't last forever.

SEC is about to demand disclosure of short positions. This is what will keep Wall Street in business. "Here, we'll build you a total return swap that mimics a short position that you don't have to declare." It's a dirty business.

Short sellers aren't the problem. Slivers of equity on trillion dollar balances sheets are. Cramer has left the reservation. Macke rules! Though he drove Mr. Practical from the best financial site other than The Big Picture. Here's to private investment banks and ECNs with fidy cent spreads. You asked for it. You got it.