October 28, 2009
When is the SEC going to act on this proposal? Are they preparing for another comment period?
It is obvious that hedge funds have influenced the SEC as easily as they influence the markets. If you listen to the representatives of the hedge fund industry, you would think the world will no longer exist if we bring back the uptick rule. They repeat the same story about price discovery, liquidity, efficiency of the markets, etc. and bend research data to fit their needs. Well it appears to me that we were much better off with the uptick rule in effect for 70 years and we do not need counterfeit shares and the ability to pound them down to worthless levels to have liquidity, proper pricing, and efficiency. Just look at the volatility that we have had since the rule was suspended and the negative effect it has had on our economy and on people's lives. It is just too easy for the hedge funds to make money when the deck is stacked against the long investor. It is sad that so many people have lost so much of their net worth while a few greedy individuals have profited at their expense, and to add insult to injury, the average person's shares were lent out without their permission, so someone else can short them.
Hopefully Congress will step in and persuade the SEC to do the right thing.