The point is that the brokerage house/ bank use the positions of their clients as pre loaned paper to short against.
At any time the protraders in house will sell your investment down if it is trading in overvalued teritory.
It's the fundemental fraud, breach of trust and conflict of intrest that is the problem. Now that the pillers of our society are the victems, the truth is becoming main stream topic.
I see today that one firm boasting of how much they made shorting is now going to buy back a bunch of their own paper....This is a simple moral issue..... should someone else be allowed to profit for someone elses investment and at the expense of the real investor.
It is the deception of the investor in who is providing the borrow. I maintain that no investor would willingly allow his shares to be used to brovide downside momentum in the stock, and certainly not without being compensated for it. The Banks, not only decieve their clients but also take any fees resulting for provision of the stock to another insitution.
The deck is staked against the long holder. JMHO