A fun quick guide to short selling, or how a few greedy people are destroying society

Now lately, there's been a lot of talk about hyperinflation and the tanking economy and a little bit (but not quite enough) talk about short selling in the news and those who don't know may be wonder, What is short selling? Let's explore together.

Short selling in theory is when a special kind of broker called a short seller borrows stocks or bonds or other shares and securities from a stock broker. He then sells them to investors. If the price goes up, then when the investors sell he loses money, if the price goes down, he profits. He then returns the shares to the broker and pays his fee.

Now in practice, ones the shares are sold, the short seller manipulates the market via planted news stories, corporate sabotage, and hearsay in order to insure a big payoff, the losers being the broker who now owns worthless stock, the investors who've lost their money, and the company/government/country being invested in and it's perfectly legal!!! It is the market equivalent of buying fire insurance on a house and then burning it to the ground. Companies such as overstock.com and even the state of New York were almost bankrupted but these schemes.

But wait, how does this effect inflation and why is this the biggest cause of hyperinflation (including in the pre-nazi weimar republic wherein a billion marks could barely buy a loaf of bread)? Well, the Federal Reserve is a central bank and is therefore a private corporation and other nations invest by buying our currency, some of it from short sellers.
Now America works on a fairly stupid system of determining its economic health based on the Dow Jones Industrial Average which is an index of the largest US companies which are by no means the entire economy. So short sellers borrow currency from the Fed and sell it to other countries. Then the news coincidentally puts too much emphasis and focus on the JD tanking and no attention to the rest of the economy causing countries to dump dollars as an investment. This drives the value of the dollar down, allows short sellers to make a killing, and forces the government to print more money because it loses it's value by a factor of 10 compared to just printing more to cover costs.

And that's another way in which you're having a buffalo wing jammed up your ass without you even knowing it.

You must hate the billionaire Democrat financier George Soros.

****ing capitalism.

For short selling, yes. For trying to corrupt the government with money even if it's in opposition to conservatives, yes.

But I have to admit for me personally, it's very ****ing hard for me to hate a holocaust survivor.

Originally posted by Darth Jello
For short selling, yes. For trying to corrupt the government with money even if it's in opposition to conservatives, yes.

But I have to admit for me personally, it's very ****ing hard for me to hate a holocaust survivor.

I guess surviving the holocaust makes up for destroying society..lol

Yeah well, see if you don't feel at least some sympathy after someone shoves half your family in an oven.

Originally posted by Darth Jello
Yeah well, see if you don't feel at least some sympathy after someone shoves half your family in an oven.

That gives him the excuse to destroy society as you put it?

no dumbass, it means i hate what he does but I can't bring myself to completely hate him.

Originally posted by Darth Jello
no dumbass, it means i hate what he does but I can't bring myself to completely hate him.

Lol you have some issues then. If someone is destroying society I would hate their guts, no matter what happened to them 50 years ago.

What about some guy that molests and rapes small children? Would you not hate there guts because they were beatin when they were kids?

Originally posted by KidRock
You must hate the billionaire Democrat financier George Soros.

I hate Soros. Not because he's a democrat, but because he an imbecile and a moron and a propaganda funding shithead.

Originally posted by KidRock
Lol you have some issues then. If someone is [B]destroying society I would hate their guts, no matter what happened to them 50 years ago.

What about some guy that molests and rapes small children? Would you not hate there guts because they were beatin when they were kids? [/B]

so you don't see how a jew can feel some slight shred of sympathy for a holocaust victim as a jew and only on that level? And you'd rather bring in George Soros as an example of liberalism because you assume that because I seem like you're stereotype of what a liberal is that I love George Soros rather than actually debating the topic of the thread? I'm surprised that you're so ignorant of health care costs considering that anyone who tries to have a reasoned debate or conversation with you either feels like walking away from you or punching you in the head. You're debate tactics are ironically taken straight out of Lenin's playbook.

^naaah, more like LRH.

Originally posted by Darth Jello
so you don't see how a jew can feel some slight shred of sympathy for a holocaust victim as a jew and only on that level? And you'd rather bring in George Soros as an example of liberalism because you assume that because I seem like you're stereotype of what a liberal is that I love George Soros rather than actually debating the topic of the thread? I'm surprised that you're so ignorant of health care costs considering that anyone who tries to have a reasoned debate or conversation with you either feels like walking away from you or punching you in the head. You're debate tactics are ironically taken straight out of Lenin's playbook.

Okay so you sympathize with the guy, I understand that already. Still though, destroying society like George Soros is doing according to you I think would take over a bit more then feeling sympathy for the poor billionaire.

It's just funny how ignorant people claim Capitalism is so terrible, yet the politicians they support who are against capitalism..are funded by capitalists.

I never said I was against capitalism, retard. I said I was against free market capitalism and the specific practice of short selling. How about you explain to me why short selling is good and why it should remain legal and largely unregulated and why insurance fraud should remain illegal by the same logic.

Originally posted by KidRock
It's just funny how ignorant people claim Capitalism is so terrible, yet the politicians they support who are against capitalism..are funded by capitalists.

Originally posted by Darth Jello
I never said I was against capitalism, retard. I said I was against free market capitalism and the specific practice of short selling. How about you explain to me why short selling is good and why it should remain legal and largely unregulated and why insurance fraud should remain illegal by the same logic.

What does insurance fraud have to do with short selling?

And why shouldnt it be legal? It's a perfectly good tool that can be used to make money when the stock market is plummeting.

And I didn't say you were against it, but nice insult..real intelligent.

Because it's exactly like insurance fraud. You're banking on the economy failing and people losing their jobs then you make it happen. How is that any different than someone buying fire insurance on a building and then burning it down? Not only are you banking on the bad economy, you're maintaining the bad economy and making it worse. How can you not understand that?

Originally posted by Darth Jello
Because it's exactly like insurance fraud. You're banking on the economy failing and people losing their jobs then you make it happen. How is that any different than someone buying fire insurance on a building and then burning it down? Not only are you banking on the bad economy, you're maintaining the bad economy and making it worse. How can you not understand that?

That would be like an insider trading scandal.

Your telling me I have a hand in collapsing a company if I short sell its stock? Yes or no?

If you do what the vast majority of short sellers do and manipulate the market through both legal and illegal means in order to drive prices down, then yes. You're devaluing currency, devaluing stock, devaluing the government's money by shorting municipal bonds, etc. You're ripping off everyone you sell to, you're ripping off you're broker, and you're destroying whoever you're shorting and potential throwing people out of work, bankrupting other investors and peoples' pensions, bankrupting public works projects, maintenance, and social programs, and astronomically driving up inflation.

Darth Jello, I could just look it up, but it would probably be better if I just asked.

I know nothing more about short selling after your explanation, than I did before.

I still don't know how the short seller is turning a profit.

Use numbers for me...and trace "the dollar/s" through the process to show me how the short seller ends up with a profit.