CMKM Diamonds Inc (fka CMKX)

[average investor]

Actually I am Janice. You are now talking of Credits versus Debits which I will use your senerio.

Our bank “lends” our deposited money to others and we Knowingly allow this because we expect compensation in the form of “interest” and other compensation on our deposits.

True the bank is “A” winner since they receive a higher percentage of the interest that is charged for “loaning” out OUR money. But we also are COMPENSATED with a percentage of these profits and other types of compensation such as free checking, etc.


And do not be naïve... YES extra money IS created from the “external” source that the money is “knowingly” lent to in the form of “INTEREST” returned on the loan.


Where shorting a stock has exactly the reverse effect in that the dilution of the market cap by these borrowed shares in effect drives down the base valuation of each share of stock and ONLY compensates the shorter if the “self-fulfilling prophecy” of the stock going down so that the short can cover at a lower price and make money does occur.

Notice the only one who is COMPENSATE is the shorter and everyone else loses.

So I guess that all the good investors in a stock and the company “ARE THE ONES NOT USING THEIR HEADS”, since the only one who makes money in a short situation is the shorter.