May 4, 2009
The uptick rule should definitely be reinstated.As soon as the uptick rule was done away with, the markets were in shambles. A prime example of the disaster of doing away with the uptick rule would be AIG. It is impossible to think a company of this size with a stock price in the $60's could so easily be taken down so badly in such a short amount of time had the uptick rule still been around. All the downside moves have been exaggerated because of the uptick rule being done away with.
I think that as soon as the uptick rule is implemented again, we will see the markets see some type of stability, and not be bound by the short sellers nearly being able to make companies go out of business.