I'm not saying the Pope still owns California, or the King of Spain who made the land grants.
But land and real estate is borrowed and sold, borrowed and sold...just like stocks and bonds.
So, if you buy a cheap vacant hillside lot like I did you may just end up paying taxes on it and not be able to use it.
Why? You bought SECRET shorted land. Probably people borrowed the land from the bank and sold it, borrowed it again, and sold it....So, WHO really owns the land? The person who orignally loaned the land to the bank, or the LAST person to buy it from somebody who borrowed it?
If you borrow money to buy a lot and house, the bank will resell the mortgage many times to other investors. The money will be kept in the bank. If you can't pay, then the other investors CAN. The bank loses nothing.
Do you think bankers were born yesterday? Bankers are as old as the hills. And they are very good at keeping trade secrets. Show somebody how to do your job and they will do it.
Retail bonds were shorted before bankruptcy. As with common, they would not be marginable or able to be shorted since bankruptcy. There are probably existing short positions out there now. They will eventually have to cover bond shorts, common shorts will make 63 cents per share on there shorts since common will go to zero and they may not have to cover prior to that happening.