May 5, 2009
The original uptick rule served well for several decades. Getting rid of it was a mistake. Academics can opine about their theories, but any empirical evidence must be gathered from the recent debacle of shorting stocks mercilessly in the Fall of 2008.
People on trading desks are in the battle zone, and they can tell you how these things work in real life, NOT in academia.
Naked Short selling must be stopped Criminal investigations are in order
The uptick rule must be reinstated (NOT waiting for 10% down).
Only then will you restore investor CONFIDENCE.
Are not Confidence and Trust the foundations of this market system??