It's a deception from the beginning. It's like borrowing against the value of a clunker car using the collateral of your buying the car in the future. You take that promise and sell claims to the proceeds from the future sale of the car to someone who doesn't own it, only they don't know it's a clunker, and you do. So they give you $X, thinking that they'll get $Y in the future, and you take $Z from $X to purchase your claim to the future sale of the car. Only since you knew it was scrap, $Z is far less than $X and $Y amounts to vapors. When the sucker who bought the bullshit 'shares' from you realizes they have been fleeced, it's too late, 'you should have done your research...free market, goy!' But it's worse than that, because if we include the analogous part that reflects how much power the funds have over insiders, media, and ratings agencies, then this is the equivalent of the short-seller hiring a pack of niggers to go destroy the car in the dead of night, i.e. they tank the market value of the car. This seems to be one of the two main schemes. Here we are borrowing and selling against the value of something we know is overvalued. In the other type of scheme, you manipulate perception to undervalue something that is actually appreciating, you scoop it all up when it's being dumped, and wait for the surprise. Gee goy, you really got this one wrong, that's the free market for ya!