May 4, 2009
The "Uptick" Rule should be reinstated by the S.E.C.
I believe its absence over the last few years led to great losses to my wife's and my net asset value. For instance, the value of Citi Group fell without reluctance from over $50 to $2. In fact, so quickly that I was unaware of the initial fall as we were on vacation last year. We held C for over 20 years and hoped it would recover.
We believe, the ability to make uncovered short sales, as well as not having to honor the Uptick Rule have led to the earlier stock market drop.
In fact, the current market recovery may be a result of the same short sellers covering their "investments".
Sorry, to be so cynical, BUT, it seems clear to us that the S.E.C. Commissioners need to admit that mistakes were made during the prior administration and reinstitute the uptick rule and ban naked short selling ASAP