May 5, 2009
Even though I don't short stocks I'd like to see the SEC reinstate the original rules requiring a stock to trade higher before being shorted again. Also better enforcement of people not owning the stock being shorted. The retail investors in 401K's like myself have seen what happens when groups of people start shorting sectors of stocks like financials and perceived financials like GE. These stocks some in the Dow Jones averages have caused the averages to swing wildly on days down 200 and 300 points and up 200 and 300 points when people had to cover these short calls.