May 6, 2009
It seems to me that when pondering the contents of the original "uptick" rule in the 1930s, the officers at the Sec and our Congress alike must have carefully thoughout the reasons for its implementation at the time. Similarly, our 2008 economic downturn has been described by the most noted economists as the worst crises since the Great Depression of the late 1920s and its aftermath of them 1930s. The "Uptick Rule" was implemented in the mid 1930s and remained in effect until 2006 (70 years). There must have been good reason for its existence.
Therefore, I believe it should be reinstated in its original form to keep stability in the markets. We cannot afford to ever repeat the kind of volatility in the markets along with the vicious pummeling of the stock prices of our financial institutions (the backbone of our economic fabric)that we experienced in the fall of 2008.
I would think it would be incumbent upon our Sec and Congress to do everything possible to maintain an orderly stock market system by reinstating the "Uptick Rule" and any other safeguards they deem necessary to accomplish this end.