May 5, 2009
I would encourage a return to the original 'Up Tick Rule', as this rule served the market well for approximately 70 years. The current rule has been a tool for the market predators, whose actions have caused the ruin of viable institutions, the unnecessary (and un-warranted)loss of capital, and loss of investor confidence.
It should be remembered the US stock market should be a fair and equitable trading platform, and that it is regulated ONLY to preserve that fair and equitable environment.
When the 'Up Tick Rule' was eliminated, only the short sale preditors were benefitted - - and they took full advantage of that condition, and left a path of destruction in their wake. This path of destruction is a clear indication of how one sided and unfair that the elimination of the rule was.
Any plan, other than the original 'Up Tick Rule', is merely a band aid - - and a band aid that complicates, rather than one that cures and corrects.
The last 8 years or so are a fine example of poor leadership on the part of the SEC, hopefully the new SEC leadership can lead - - for the good of our country - - and the good of our market economy.