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  Unbridled Capitalism

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The Illusion Called Free Market Capitalism

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Selling Short   

Hedge fund   

When a stock trader believes a stock is over valued and the stock price is about to fall.    The trader buys stock in that company mostly on credit from a seller.    At a later  date, he must either return the stock or pay the seller the full amount owed to the seller.   When the stock price falls, he buys back the stock and returns it to the lender.   The stock trader keeps the money he made by selling high and buying back at a lower price.

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