May 4, 2009
The uptick rule must be reinstated exactly as it was prior to 2007 no modifications, no more academic studies, etc. I know that fear is the greatest mover in the stock market. The uptick rule prevents fear from gaining a momentum so great it can't be stopped resulting in the huge loss of company wealth. If the uptick rule had been in place the depression of 2007 and 2008 would not have occurred because Banks would have been able to raise liquidity and investors would have had confidence in the market. Without the uptick rule the same scenario will be repeated in years to come and then someone will finally put it back. Is it going to take another catastrophic market crash to get the uptick rule reinstated.
Also, the hege funds can work together to destroy any company. Short the stock using huge amounts of money, not having to take ownership of the stock and drive the stock price down to a panic level. Then everyone jumps in to short sell the stock and the company is destroyed.
The USA cannot bail out another fiancial crisis. That's the reason the uptick rule was put in place during the Great Depression. It worked until it was taken out in 2007 and we got another almost Great Depression and we have no money to pay for the Trillions lost.
Do not allow the Stock Market to become a Gambler's Market.