March 23, 2008
March 23, 2008
Im writing because the Security Exchange Commission (SEC) has given market short-sellers the high hand in driving the market—and my portfolio— down 60% in only 3-months, and at 68-years of age, I want you to force the SEC to reinstate the Up-Tick rule before it destroys the entire stock market and my retirement aspirations.
Elimination of the up-tick rule last year was tested and found harmless to the public, or at least thats what the SEC said before it rendered its final decision in July to dispense with the rule. That decision was wrong because the tests were conducted during good economic times (2003-2007), and the up-tick rule was designed to prevent stock market crashed during bad times, such as 1929 and 1987. If tests had been conducted between December 2007 and now, the up-tick rule would have remained in effect.
The up-tick rule was supposed to serve as a bump in the road to discourage negative sellers, whose only purpose is to cause and then to amplify market action to the downside. Without the up-tick rule, short-sellers (e.g., hedge funds) seize on any negative publicity such as the sub-prime debacle in an effort to destabilize the markets to the downside. Once a negative trend begins—and in the absence of an up-tick rule to restrain their greed—more short-sellers pile on and markets quickly accelerates to the downside.
In just 3 months, I have lost 65% in my IRA and 55% in my 401k, and at 68 thats not a prescription to a happy retirement. Please show your support for folks like me who view the stock market as a long term investment rather than a game backed by the SEC in favor of short-sellers.
Reverse this fiasco and reinstate the up-tick rule.