May 8, 2009
Re: Uptick Rule and Naked Shorts
To be brief I am urging the SEC to reinstate the Uptick rule. I believe that markets should operate with little intervention from the goverment.
However the playing field should be level and fair. The uptick rule has been a simple and effective limit to artifically shorting a stock to the detriment of long term investors.
It is vital for investors to believe that the markets are not fixed or slanted against them. If investors begin to believe that hedge funds and institutions can tear down weak companies at will then they will avoid the stock market. You have got to realise that this is bad for everyone.
The same is true for naked shorts. We don't need to invent new volumes of regulations when the old and simple regs. have proven to work.