February 12, 2009
Mrs. Mary Schapiro, as a new Chairwoman of SEC, you have an opportunity to refocus the markets from speculating to investing. Investors have been destroyed, the previous administration approved all kinds of changes to destroy companies and investors from the UltraShort funds, to elimination of the uptick rule, to the un-enforced manipulation by organized short selling funds and the use of the media such as CNBC to support manipulation.
President Obama promised change and an end to old ways, I assume that also meant laws to favor investors instead of speculators and manipulators.
Pumping tax payers money into the economy and allowing stimulus packages to pass without having set new rules concerning shorts and hedge funds is counter-productive. The following must be addressed right away:
1) Reinstall the Uptick Rule
2) Allow a Mark-to-market accounting for at least next 2 years
3) Prohibit destructive shorting and elimination or at a minimum freeze double and triple short ETFs
4) Investigate people/media that are manipulating the markets and take actions to stop manipulation.
5) Tax short term gains of less than 7 days at 60% or put a tax on each transaction to eliminate speculation in the markets.
The lack of pro investor regulation has accelerated the downside slide in the economy, is pushing us to the brink of the worst depression, companies will file for bankruptcy, lay-offs of many workers and wiping out savings of many hard-working families and retirees.
I am also wondering how CNBCs Charlie Gasperino always comes with information from bankers that should not be disclosed to a single individual because it moves the market
Please do the right thing and do it now.
Sincerely,
George Tzaneteas