"Similar to the way longs "own" a share entitling him/her to the...

"Similar to the way longs "own" a share entitling him/her to the benefits of price rise, shorts also "own" a share entitling him/her to the benefits of price drop.

The popular perception is that you can only own something through buying, that is not entirely correct. Through shorting I am exposing myself to the economic benefits my action generates, I am "owning" it just in a different direction to the longs."

The above is actually pretty accurate. It's amazing how little people understand about fundamental economic dynamics. Shorting IS NOT artificial. It's a facet deeply rooted in every market there is since they first existed.

By longing, you OWN the share. By shorting, you OWE the share. There is nothing artificial or contrived about this. In both cases, you have an equal yet opposite connection to the movements of the security. One doesn't take preference over the other in terms of 'importance.'

"I don't see why anything needs to be done at all. If something is overvalued in your mind then don't buy it if you don't want to."

Rubbish. Shorting is healthy, provides liquidity for the markets and keeps things sane. Market movements would play out the same way without shorting, just over a longer, more drawn out period of time.

If a company's fundamentals are good and the price is under the value, the longs have NO REASON to worry about shorters - they'll eventually get burnt. If a company is overvalued, however, it provides a way to bring the price down to sane levels, without which the price could just keep on drifting towards the sky purely based on GREED. Heck, we have huge enough bubbles WITH shorting..

"Anyway, I disagree with the concept of short selling."

LOL, disagree! Classic. I disagree with the concept of interest rates. i disagree with the ideals of market equilibria. I disagree with the notions of profit and loss.

" If I form a view that your house is overvalued should I be allowed to short sell a portion of it, even though I don't own it, and thereby reduce its market value?"

That's an incorrect example. His house isn't a security that's freely traded. Try again, this time with something that people can actually legally trade with on a market of some sort.

"Shorting is a tool for deep pocketed institutions to manipulate the market and there is a lack of transparency for real investors."

There is the same amount of transparency for buying as there is selling. The market makes manipulate price by buying as much as selling. Wrong again, try once more.

And buy the way, yes you can short a loaf of bread. All I need to do is go to the mill, ask if I can borrow a few thousand loaves, sell them, buy them back when they're cheaper.