Last week, two hedge funds that specialise in making money from failing companies went bust. These hedge funds engage in short selling, which involves borrowing stocks from investors for a small fee, and then selling the stocks immediately. If the stock falls, the hedge fund can then buy the stock back at a lower price and make a profit. Shorting stocks is not for the faint-hearted. In a market where central banks have inflated asset prices and have bought practically everything that is not nailed down, it takes a brave investor to engage in short selling. It also comes at a…