May 4, 2009
With regards to the uptick rule, one must keep in mind that during times of crisis that the market is not "rational" and is instead driven by fear.
Please don't get sucked into academic theories that rely on supposed rational efficiency when this is precisely what is lacking during such times. We have once again seen a true test of what happens during a collapse -- and this is the situation for which an uptick rule can help. It can help slow down the collapse, allow information to become available, and allow government and private institutions more time to avoid calamity.
Also, you must understand that allowing people to drive down prices, for profit, perhaps endangering companies, is not a way to grow the economy, the wealth of the nation, or the wealth of it's citizens. Companies can fail just fine on their own without having their capital ravaged by speculators with large pockets.
In short, use your brains.