How is "naked short selling" of stock any different from selling corn that hasn't been grown yet? Or, taking out a construction loan. etc.
There are lots of "don't have it yet" processes. Consider the typical loan. The borrower typically doesn't have the money at the time that the loan is made.
There are lots of "don't have it yet" processes. Consider the typical loan. The borrower typically doesn't have the money at the time that the loan is made.