March 4, 2009
Most individual investors believe that naked shorting and the repeal of the uptick rule are among the several causes of stock market devastation. The typical average person is getting killed with what is happening. Majority of Americans, including myself, voted for president Obama to bring about change –pne of those being the rules under which stock markets operate. There is not a single good argument for allowing naked shorting to continue. It was discontinued because some self serving investment professionals said it was difficult to enforce and also that it did not affect the price of a stock. No viable and credible proof has been offered to that effect. If there is one I would love to see it.
As to the discontinuation of the uptick rule, which was promoted by again the self serving market professionals, it is allowing the decimation of a stock to unlimited downside once the powerful trade and hedging teams decide to gang up on a stock. How can that be allowed when theoretically a worthwhile company could be shorted by the powerful to almost nothing. The fact that the “thorter have to eventually buy back those shares would not provide solace to the typical investor who sees his/her investment in a stock is decimated day after day and decides to bail out after hefty losses.
We elected president Obama to bring about change. Please do not disappoint us. Thank