May 5, 2009
If the goal here is to protect the rich and the sofisticated the uptick rule should not be applied.
However, if the goal is to protect small companies going belly up, getting squized out of credit, protecting general small investors, then IMO, not only the uptick rule should be activeted but the securities should really look into forbidding the short selling at all?
I don't know but do our laws allow US $$$ to be shorted? If the same US$ can be shorted many times via borrowing, how would it effect the value of $? Should we apply same rules what protects the US$ to individual COs value?
I am sure you guys are much smarter then us and hopefully doing everything possible to protect the week, unsoficticated and simple people. I am hoping that the rich are able to protect themselves.