February 25, 2009
Dear SEC,
The lack of an uptick rule since July 2007 has obliterated the stock market and citizen's wealth.
We are in the midst of a recession. The consumer does about 70% of the consumption in our
economy. With deteriorating home values, and an obliterated investment portfolio it makes
sense that consumer spending is on the ropes. The lack of an up tick rule has unnecessarily
fueled the stock market decline. From Jan 2006 until July 2007 there were merely five 90%
down days in the S&P 500 index. Coincident with the July 2007 removal of the short sale uptick
rule, 90% down days on the S&P 500 have increased exponentially. Since July 2007 it can be
counted that there have been THIRTY FOUR 90% down days on the S&P 500. And they are still
prevalent through February 2009. It is simply obvious the lack of an uptick rule is simply ruining
the stock market and the resources of this country. The SEC needs to act promptly to fix the
problem and reintroduce the venerable and proven uptick rule. To sit idly by and let current
conditions persist ia an insufferable injustice to our society.
S&P 500 Index with 90% up and down days –!January 2006 to present, daily chart Source: Banc of America Securities-Merrill Lynch Market Analysis, Bloomberg