May 4, 2009
I urge the SEC to restore the original spirit of the uptick rule, which applied to all stocks across the board, at all times.
This should not be a circuit-breaker rule that is only invoked for specific stocks in special cases. That will merely challenge malicious short-sellers to be more cautious, finding ways to avoid triggering the rule.
I want to remind the panel that selling short and buying long are not equal in market power. It takes more work to instill confidence about a company than it does to create fear and panic. Rabid short sellers yield a weapon that can destroy a company, and need to be reigned in.
The original rule was wisely put in place after the Great Depression. We need to return to the rule, in order to make this a healthy marketplace.
On another note, the SEC needs to clamp down on triple short ETFs, which help sellers avoid margin rules, and have been widely responsible for helping tear down otherwise healthy stocks, esp. financials.
Please do your part to restore the market to health. Thank you for your consideration.