March 5, 2009
Dear Chairman Blair,
After missing the Madoff scandal I would think the SEC would be working as hard as they could to help restore investor confidence in the financial markets. The abuse of short selling and credit default swaps are destroying the investor’t confidence and investors wealth. The attached article regarding how the use of credit default swaps is forcing companies into bankruptcy. This must be stopped. The financial markets are not meant to be a casino. It is an integral part of capitalism and the creation and re-distribution of wealth. As long as you continue to ignore the ability of traders to manipulate the credit default swaps of companies which has an immediate impact on credit costs and stock prices the market will continue to decline. The SEC needs to take a stand and bring back the uptick rule, end mark-to-market accounting, and somehow regulate the credit default swap marketplace. The Madoff scandal costs investors billions. The current market manipulation through credit default swaps, mark-to-market accounting, shorting, and spreading false information has cost investors trillions. So far the SEC has only given these manipulators confidence by supporting mark-to market regulations, believing that the uptick rule wouldn’u help, and not regulating the credit default swap market. These people are making money destroying our economy and our wealth. Almost everyone has a 401(k) plan and is being negatively affected by this so please take a stand and finally do something to help support basic investors, not the rich hedge funds!!!!