[who_would_fardels_bear]

Also, don't forget CDSs. These are insurance instruments that companies bought against corporate failures.

CDSs were so unregulated that traders could buy insurance on other peoples' companies, and they could buy multiple policies.

So now shorting a stock not only reaps you the rewards from the trade, but then you can collect on the CDSs policies on companies that you cause to fail!

It's a real "win-win"! ;-(

[Kackikat]

Only for the short seller, but not for everyone else unless they are part of his fund.