There has been a lot of talk about whether the blame being shoveled on short sellers was misguided. Jim Cramer does not think so. In his inimitable way, he makes clear his view that short sellers coordinated their attacks that devastated bank stocks--and darn near put Morgan Stanley out of business. In his view, short sellers used the credit default swap market and put options to put lots of pressure on some stocks, which costs investors "trillions." He argues the government action has put a stop to the short seller gravy train by taking away the threat of failure. This is a memorable rant: He says big shorts buy CDSs, which he likens the process to buying insurance on a house and then burning the house. He also accuses shorts of resorting to "rumors and article" to drive stocks down, a serious issue that the government is looking into. The goal is to get a pile-on effect, which would cause counterparties freak out and cut their ties and cause rating agencies to go nuts. At that point a company like Morgan Stanley could actually be forced to its knees.

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