Comment Re:Meal Team Six: The Keyboard Warrior Chronicles. (Score 1) 188
If you think about it, this isn't even adding value to the economy; it's just skimming value off the inventory of whomever you're borrowing from.
Oh they always argue that it provides liquidity for others to enter or increase a position, that it provides price discovery of the fair value to keep an equity from bloating, things like that. (Note, I'm dubious of that value even if true.)
it only works as a system if the lender assumes that the assets will recover value over time,
Don't forget the short seller pays a fee to the borrowed shares owner, so it isn't completely out of the goodness of their heart to lend out those shares when they most often see the price recover later too.
But overall, love your take on this and agree wholeheartedly!