June 11, 2009
The "naked" short-selling rule should be abolished. Since it's reinstatement in 2007, retirees like me who depend on our investments for vital income have seen our retirement nest-eggs decimated by the downturn in the markets. The "hole" in my retirement investments has caused me to re-consider full retirement from my part-time employment in order to save more money to revive my retirement savings, 40% of which is in stocks and mutual funds, and it's not a small amount.
Naked short-selling is responsible for much of the stock market's decline. The sharks on Wall Street have ruined many Americans using this tactic to bludgeon a security without regard to every investor holding the security. For what reason? I believe the only reason is their personal profit motive at the expense of medium and long term investors.
The uptick rule was put in place for a good reason. I don't want this country to experience the trauma our fathers or grandfathers experienced after the Great Depression when the same tactic drove stock markets into the gutter.