May 30, 2009
Regarding the reinstatement of the uptick rule:
This is a very simple argument. Something that worked very well for more than 70 years should be reinstated, as it was, with no modifications. It worked, and there can be no argument that the lack of an uptick rule contributed to the destablization of the capital markets for the major banks, which forced the Fed to jump in to save the day. The value, and hence confidence, in the largest of our most fundamental building blocks of capitalism (the banks) was driven down too fast by relentless short selling.
Either through ignorance or gullability for false arguments, the SEC under Mr. Cox made a grave error. I forgive him...we all make mistakes. But now is the time to re-establish rules that buffer wild market swings that are certain to occur again in the future.
Let's use some common sense, and reinstate the uptick rule as it was, so we can enjoy another 70 years of stable captial markets, without another panic-fueled irrational destruction of our banks.
Respectfully,
Leonard Pitzalis
Small Business Owner,
Private Investor, and
Proud American