April 21, 2009
Short selling (provided the shares are available) is essential for market liquidity. Congress / Government cannot continue to pass blame for the greed of wall street firms and lack of oversight of these firms. Of any of the proposed restrictions on short selling the propsal to
"Impose a short sale price test based on the national best bid in a particular security for the remainder of the day if there is a severe decline in price in that security (a proposed circuit breaker modified uptick rule)"
This way, stocks are protected from being pressured down (something that couldn't happen if the stock had value anyway - supply / demand) at a certain point whilst maximum liquidity is restored.
Please don't take irrational action because people are scared and trying to get a quick fix for this awful mess this country is in. These actions such as setting short sale limits to prices higher than NBBO will only hamstring markets and create more problems.
Thanks for your consideration.