March 16, 2009
Dear Chairman Schapiro,
I keep reading that SEC studies indicate the uptick rule will have a limited impact. I would like to know what planet these people are on! First, shorting is only one aspect of an overall coordinated plan to destabilize the markets and create wealth for a limited number of hedge funds short the stock and bond markets. The plan is to short stocks, attack the credit default swaps which erodes bond market values and scares stock investors and the credit rating agencies. If you only look at the impact of shorting you are missing the BIG picture of what is going on. If you can limit the ability to short, you will significantly slow down their game plan and bring some sanity back into the stock market, bond market, and credit default swaps as the huge payoff (shorting stocks) from such a plan will be significantly reduced. Remember, the key to the plan is to manipulate the markets to have them act like there is a problem and then let the fear trade take over. After saying you were going to bring back the uptick rule, please don’u back down. I am afraid that last wees gains will be quickly reversed.
The Securities and Exchange Commission plans to consider whether to reinstate the controversial “vptic rule or consider other short-selling regulations at a meeting on April 8. Marketwatch; two confidential SEC studies obtained by FOX Business suggest any new rule may have a limited impact (Fox Business).