Enox, I was really dealing with the world as it is, rather than with what it should be, as in whether shorting should be illegal. The fact is, it is legal.
There are significant differences between housing and corporate securities. Every house is unique, and even beyond the objective uniqueness that they have, we endow them with further "specialness" because of what they mean in terms of our lives and our families and our hopes and dreams. Every share of ORT is the same, on the other hand. Similarly, possession of the real estate is important to the owner... it is irrelevant to the shareholder... in fact, when was the last time that you saw a share certificate.
One of the things that has bothered me about shorting, however, is the comment that you and Nakate make about "without their knowledge". I would be very surprised to find that there is not something in the fine print when you open your brokerage account or margin account that allows your broker to loan your stock. Just because you did not read it, as I did not, does not mean that it is without your knowledge.
And if I'm correct about that, that is how you can change things. It will never happen, but if a large enough percentage of the customers of the brokers were to say that they will take their business to a different broker who does not loan out their shares, this practice will stop. If there are no brokers who agree not to loan my shares, there would sure be some quickly enough if enough people insisted on it. we can't expect government to fix everythng for us. The consumer has enormous control over business practices. But you have to care enough to really do something.