March 3, 2009
DEAR Colleagues, Business Partners, Family & Friends:
Have you lost over 25% of your investment portfolio in the last year, quarter, month or even day? Are you perplexed as to the reason why the stock market has been experiencing 250 to 500 point swings on a daily basis? Are you wondering why the VIX index is at an all-time high? Maybe all this is a result of a simple rule change that occurred in July 2007? The SEC eliminated the UPTICK RULE on July 2007. "The UPTICK RULE that Joseph Kennedy's SEC established in 1938 bars selling a stock short until an uptick in its price, counteracting some of the 'piling on' that occurs when stocks begin to falter. The rule was dropped in July 2007, during a bull market when liquidity was no problem, but markets have swung wildly since then. Our 18-month experience of short-selling without the UPTICK RULE has been a disaster. Reinstating the UPTICK RULE would go a long way toward restoring investor confidence that the market is not being run by manipulators."
Please feel free to distribute this e-mail petition link information along to your colleagues, friends, business partners and politicians. Basically everyone that has a vested interest in the stock market. I encourage everyone to take action and voice your reason on why the absence of this regulation is destroying the stock market. We need to join together en masse for support on this bill. Currently Congressman Gary Ackerman has sponsored a bill that will require the Securities and Exchange Commission to reinstate the uptick rule on short sales of securities. How much more stock market destruction is required before action takes place? I thank everyone in advance for their support!
http://www.petitiononline.com/abc456/petition.html
Ackerman Urges New SEC Chief to Restore Uptick Rule to Regulate Short Sales of Stocks
http://www.house.gov/apps/list/press/ny05_ackerman/PR_012709.html
Research on Market Stability and the Uptick Rule
http://www.necsi.edu/research/economics/
http://www.necsi.edu/research/UptickTechReport.pdf
Sincerely,
George A. Flagg