short selling houses, page-10

MobyT, they are not only betting it will go down, they casue it to go down, then let the flow on effects have its turn.

As i stated, if the same were allowed for houses /apartments there would be outrage.

Say an apartment block is 75% owned by a large company say 200 units, the remaining 50 units are individuals. The company lends their apartments.
The apartments originally sold for $400K.

You own 1 paid 30% deposit.

They start sellling some at $300K you owe $280k. the bank knocks on your door and says we will lend 80% of the value, which is now $240k Lend . Gives us 40k within 24 hrs or it will be auctioned at 2pm tomorrow. You cant pay, so a fire sale auction only 1 bidder who pays 200k for your apartment, then the same applies to the other apartment owners, except the falls get greater.The original sellers who "shorted the apartrments" buy them back, because people are afraid to becasue of the decline.

its the perfect storm.
That is why shorting has noe benefit at all.
if you dont like the company dont buy it, many a company have been ruined by shorters.

We should start a campaign to list the companies that lend their shares!!!

Then we could all avoid them