May 4, 2009
We need to reinstate the uptick rule, which protected our markets for 70 years, in it's original form. The purpose of the stock market is to raise capital to fund American businesses it was never designed to be a game for profit at the expense of the nation. Unfortunately, flawed studies led to the elimination of the uptick rule in 2007. Current studies fail to look at the abuses in 2008 that forced several prominent companies out of business.
The entire US economy was pushed to the brink of destruction. The bank crisis was greatly multiplied by the lack of protection caused by the elimination of the uptick rule. Our multi-billion dollar bailouts and deficits are a result of the lack of an uptick rule. AIG would have had time to raise capital. Perhaps Lehman, too. Unfortunately, the short-sellers were able to push these companies into bankruptcy in a matter of days. Millions of Americans have had their retirement accounts decimated. Thousands have lost jobs. Our current economic recession has been much more severe because of the elimination of the uptick rule. We were left unprotected, so a few could profit.
The SEC needs to fulfill it's responsibility, and protect our markets by reinstating the uptick rule. This safety valve is needed to insure the safety of not only the markets, but jobs, retirement plans, and the United States itself. Keep our country strong and bring back the uptick rule
Sincerely,
David A. Cuzman, CCM