May 4, 2009
a. If it aint broke, dont fix it. The uptick rule had no negative impact from its inception. In retrospect most now recognize it more than likely had a positive impact. It wasnt broke. It should not have been abolished.
b. Academics dont always work in the real world. For several reasons, academic studies or beliefs do not work as theorized in the real world/market. Sometimes it is bad input in the academics. Sometimes just insufficient. We learn from errors. Future academicians will establish quantitatively why the uptick rule is positive.
larry bierman