April 14, 2009
I believe that the SEC is directly responsible for the greatest destruction of wealth in this country's history, due to its repeal of the Uptick Rule, implementation of mark-to-market accounting (FASB 157), and failure to enforce "naked shorting" rules. Eighteen months ago I began contacting the Commission about these concerns. I repeatedly argued that the SEC would bring the financial industry and the broad market to its knees, due to these factors. This was blatantly clear while watching the tape action of Fannie Mae and Freddie Mac--it was unlike anything I had ever seen before. For the first time, I knew I was watching a well-orchestrated "bear raid," that far eclipsed anything in history (including the 1930s).
Perforce, I strongly endorse all efforts to reinstitute the Uptick Rule, suspend FASB 157, and enforce rules against naked shorting.