Short-selling has it's place. When the whole world goes mad buying up sub-prime mortgages or tech stocks or tulip bulbs or some other nonsense, shorting provides an opportunity for bears to make a profit on their speculation that the market is grossly over-priced instead of simply "choosing not to buy".
The whole system is rigged to blow bubbles. Short-selling is one of the few ways that realists can pop the bubble and bring the market back to it's senses.
That's not to say that short-selling is always good, but it's not always bad. That they are regularly painted as the bad guys by the global elite should tell you that they provide an important service.
https://mises.org/library/dont-sell-short-selling-short
Short-selling has it's place. When the whole world goes mad buying up sub-prime mortgages or tech stocks or tulip bulbs or some other nonsense, shorting provides an opportunity for bears to make a profit on their speculation that the market is grossly over-priced instead of simply "choosing not to buy".
The whole system is rigged to blow bubbles. Short-selling is one of the few ways that realists can pop the bubble and bring the market back to it's senses.
That's not to say that short-selling is always good, but it's not always bad. That they are regularly painted as the bad guys by the global elite should tell you that they provide an important service.