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by ignasl 2318 days ago
Stock market is much much much more efficient compared to housing and wages. One of many reasons is of course ability to short sell. In addition to price discovery short selling provides support when overpriced companies share price free falls and investors starts to panic. It also provides incentive to uncover outright frauds.

> Furthermore, the advantage appears to be extracted purely as profit by the short seller. So? Do you work for free? Short selling is extremely risky business as we could see here with TSLA. Even if you are right you can get obliterated by a short squeeze. It's basically impossible to go against solid company and damage it. And there is no reason to - there are plenty of badly managed companies with questionable financials that you could go after.