May 4, 2009
I have been investing in the stock market for over 50 years and just recently retired. My 401K and retirement funds had a major decline due to the recent market downturn. There is no question in my mind that professionals profit from short selling and added to the speed the market declined. The elimination of the up tick rule has given these people the upper hand over small investors. The SEC needs to reinstate the up tick rule and balance the markets.
The purpose of the markets should be to build companies, not destroy them. There is no question that short selling has a place but a person that wants to take a short position needs to be able to borrow the stock and not have the order executed until the stock is trading up. That just keeps people honest and protects long term investors. This rule served us very well since the 1930's and there is no reason it shouldn't be put back in place.
I will be very disappointed if the SEC doesn't take action on the up tick rule