May 5, 2009
Ofcourse the uptick rule should be reinstated. Take a look at a five year chart of the dow and pay close attention to what happens right around July of 07 when the rule which was in place for some seventy years was eliminated. This idiotic move has helped no one but the special interest that thrive on the misery of the general public. Does any body in their right mind believe that a devastated stock market can actually be good for the general public. Of course not. It seem to me to be basically criminal that the SEC has sided with such a tiny portion of special interests against the good of society in general. In fact the people that eliminated the rule should be investigated and the firms they work for should be listed for the general public to see. There is nothing wrong with short selling. The whole concept of sellng short used to be that you were selling the stock for less than what it is worth on the open market and betting that it will go down, because you percieve that the stock is over valued or has some other reason for performing badly. But they have changed the concept so that now when you are selling short you are selling the stock at market value in the attempt to drive the stock down and create weakness in the stock that would not have ordinarily existed. This is only something that can be done by powerfull special interests and ordinary investors will never be able to benefit from this strategy. They did however benefit from short selling prior to the elimination of the uptick rule because they could research the stocks they thought were weak and the market performed in a normal fashion. Not any more. Now even stocks that have strong fundamentals are at the mercy of powerull hedge funds and institutional investors that can sell short without even having borrowed the shares first. This should be criminal. But ofcourse you allready know that don't you.