May 5, 2009
I am very supportive of invoking several of the proposed short selling solutions. these would all be critical to establishing credability and confidence in the markets again. I feel the average investor has been taken advantage of from the wall street brokerages and a more fair market place needs to be established. The data previously provided to establish the end of the uptick rule was during a bull market with very little study during a down economy which has led to a one sided and falty analysis.
of primary importance would be
a) re-establish the uptick rule,
b) end the naked short selling. All short sales need to have established an accounting of an existing shares of stock that were loaned to the short seller. You need to terminate the ability to short sales of stock that do not exist or are not present as part of the market liquidity.
c) establish brakes to end all short sales during periods of abnormal downturns the same as the halts to computerized trading.
d) end the ETFs that circumvent the short selling rules through loop holes.
I don't feel the SEC which has been governed by brokerage insiders has done justice to the american people or the american economy. They need to implement these rules to insure there is a fair market and that they are not influenced by insider self interests. The SEC needs to investigate the organized short selling that also precipitated the closure of companies and the erosion of market stability.