If a student made the following statement:
And if you buy a stock, how do you know if it's a short or long that sold it to you? You don't. So who cares? For every buyer there is a seller. If a short sold a stock to someone who decided to buy it, and that buyer becomes a bagholder because of a drop in stock price, that is not the fault of the short. That is the fault of the person who bought it in the first place....he chose to buy the stock. No one forced him to buy it. it could've easily just been another long that sold it to him.
Would your response be:
Again, agree. In Enron's case the shorts didn't kill the company, management did and in the most egregious ways.