June 9, 2009
In July, 2007 the SEC dropped its own the uptick rule that was created by the SEC in 1938 in response to the bear raids by short sellers during the Great Depression. This rule has worked well at stabilizing the markets from 1938 to 2007. By removing this rule, the short sellers have again been able to conduct bear raids on selected companies and has exacerbated the recent market downturn.
It seems obvious to several observers, including Federal Reserve Chairman Ben Bernanke that the uptick rule should be restored. To quote Mr. Bernanke:
"the uptick rule "may have had some benefit" during the current crisis".
Look, I'm 60 years old, I have already lost half of my 401K and will now have to work beyond my planned retirement date. I don't have the luxury of time on my side like younger people do and to see how the SEC has dropped a regulation that worked perfectly well for almost 70 years is extremely frustrating.
Please reinstate the uptick rule as quickly as possible and it will help some of us individual investors get back on our feet and also to restore confidence in the markets so those who left the markets will feel it is safe to return.
Thank you.