April 20, 2009
Very simply - supporters of short selling say it exposes weak companies that should see their stock price drop - wrong. That is like taking care of a termite problem in your home with a flame thrower.
Weak stock prices drop when abandoned by the longs. Short selling isn't needed at all. But I can live with it. Just restore the uptick rule - please.
The only reason there are entities that do not want it back is to artificially pound stocks into pebbles. That is the only reason.
Normal shorting with an uptick rule in place is still more than the market needs.
Their philosophical arguments are bogus. All they want is a mechanism to crush stocks and take money from the retail investor.
If there is no change I am going to join the party as many I know will. Investing will then disappear and all will begin to speculate and go long and short. Individuals will slowly give all there money to the entities pushing this false philosophy - that shorting without the uptick is a right of capitalism. Yeah - if we fall for that after AIG, ... then we deserve what we get.