Tuesday, April 27, 2010

Selling Short

How to Sell Short

Next time your neighbor goes out of town, borrow his car and sell it. Then, after the car has depreciated, buy it back, put it back in the garage and keep the profit.

Brilliant! But how can this be legal? Simply put it is legal because Goldman Sachs says it's legal. As long as you pay them a fee when you 'borrow' the car, and another fee when you buy it back all is well.

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