May 3, 2009
90% Americans depdend on fair trading, advisors, bankers and brokers with limited means.
It was reveled that Short Selling without UPTICK rule brings volatility i. That is true.
But who are benefited. Insiders, hedge Funds, market makers, exchanges and few wealthy people by supplying unlimited numbers of shares for a limited demand, and by creating fear among small investors. There are several stocks having floating number of shares far exceeding the outstanding number of shares. From where these additional shares came? Company did not issue these additional shares.
Who suffers? Common person.
Short selling without UPTICK RULE (particulrly in internet envioronmnt) creates volatility. Volatility creates fear and abuses, which in turn creats liquidity crisis, which creates recession.
UPTICK RULE since 1929, brought stability based on comany's fundamentals. Elimination of UPTICK Rule in July 2007, brought nothing but severe recession, poverty, unemployment, crimes and fear. Its a clear comparison between the two.
I on behalf of Millions of Americans who lost their life savings, urged SEC to bring back the UPTICK RULE immediately.