April 24, 2009
The uptick rule should be reinstated. Naked shorting should be stopped.
Isn't the goal of the financial markets to create wealth and grow the economy by providing investment? Therefore, the market should be skewed to protect the growth side of the equation. The folks who originally put in the uptick rule showed wisdom. Our recent rule makers became complacent in a good market and stripped the market of safeguards, i.e.uptick rule, and we saw the results.
Also, you need to have borrowed the stock on which you are going to develop your short positions. Otherwise, you are dealing with fictitious shares. Without first borrowing or ever borrowing the shares, it is too easy to create a cascading effect on a company. Note the financials over the last several months. Naked shorting is taking advantage of a market again without safeguards for the regular investor.
The government needs to be looking out for investors in the market not professional manipulators looking for a way to make a buck at the expense of real long term investors. Otherwise, the market is not the place for any Regular American to invest their retirement money.