October 12, 2008
The SEC is responsible for the market crash of Oct 2008. Why? Because the SEC announced that the ban on short selling will be lifted 3 days after the President signs the TARP Bill. The market sold off immediately the President signed the Bill.
Either the SEC shouldnt have banned short selling in the first place. If they did then they should have waited for the markets to stabilize before lifting the ban. For the SEC to think that the markets will stabilize within 3 days of signing of the Bill is so nave. They should have waited for the plan to be implemented and seen the TED spread go down and the credit markets unlock before lifting the ban.
The SEC instead of stabilizing the markets have instead derailed it. Please reinstate the ban for at least 30 days. Thank you.