May 17, 2009
Honorable Mary L. Schapiro May 16, 2009
Chairwoman, Securities and Exchange Commission
A family of skunks has been released on the trading floors of virtually every exchange. And they have a name Hedge Funds. Hedge Funds are this generations version of the robber baron. Armed with a formula that relies heavily on stable markets and governments they move freely in and out of investments without caring whether lesser investors are wiped out or not. They do not invest –they bet.
The formula works well until volatility hits then they must change course quickly because the leverage they have can wipe them out, so not surprisingly they would be elated if they would not have to wait around for a pesky uptick in the price of a particular security to short it. It would be thrilling to check the archives of the SEC letters file from, Im sure, a collection of concerned members of congress wondering whether in this new sophisticated market why an uptick rule would be needed any longer (no campaign cash involved in the inquiry, of course).
We not only need the uptick we need several ticks up and the complete outick of un-regulated Hedge Funds. They serve little or no purpose to the functioning of the markets, they exist to prey on long term investors who places their faith in a host of investments over a long period of time with the understanding that even well managed companies can have a glitch in earnings occasionally, but should not suffer complete devastation of their holdings to the greed of the new robber barons.
Not just the Uptick but multiple up ticks and the complete elimination of naked shorting, Then get busy regulating the Hedge Fund Goons.
Steven C Anderson