I tried to get some feedback for you, since I don’t know the first thing about shorting. I asked Bill Fleckenstein, and will report back tomorrow if he answer the question about shorting LEND.

This is what Fleck had to say in today’s column about shorting.

BILL;

‘NEW’S STOCK SEEMS VULNERABLE GIVEN THE REAL ESTATE STOCKS DECLINE. DO YOU SEE THIS AS A GOOD SHORT CANDIDATE? I SEEM TO RECALL YOU WERE NEGATIVE ON THE STOCK IN THE PAST. THANKS
• I’m short it— it should be a disaster, but it’s a tricky stock to be short.

have you gone max short then? or are you wating for the failing rally you are talking about? I want to get short too.
• Max short? Nope— not until after the Fed stops and tells everyone. Until then, I’m selectively short… and happy being so.

Here’s what my brother, a former Wall Street securities lawyer, said about the question:
packaging things up as MBSs does not solve a lender’s problem – they typically have to retain a risk by offering to buy back non-performing loans from the pool. One would have to look at their MBS prospectus and see if the settlor has to guarantee payments or liquidity.

Rightside, I wish you all the best in your trading. Hopefully this works out for you.