March 11, 2009
Dear SEC Chairman Mary Schapiro and Congessman Barney Frank,
I was please to hear that the SEC would be reinstating the uptick rule in the next month. I was
jumping for joy at the thought that we could see some common sense sulution soon for Mark to
Market Accounting(Quicksand accounting)
My biggest concern is that the markets are so fragile that shorts have 30 days to crush this market. The massive amount of shorts in this market make it all the more dangerous. My hunch is that they will crash this market before this rule can be put in place. Once markets melt down they will not easily recover.
Unemployement will fly off the charts and cripple government programs.
The example was the 1930s. Swift action and leadership is critical to avoid a crash.
Additionally Libor is rising again and the financial system needs immediate relief. Something needs to happen major this week to take the stress off the banking system.
As you must be aware, Mark to Market Accounting rules are destroying almost every publically traded company. It is quick sand for our stock markets. Ultimately if we allow our markets to crash, it will put the US Treasury in great peril as revenue will fall sharply as our debt burden rises. This is more toxic than you know. It could lead to a massive default by the US.
Please surprise shorts by reinstating the uptick rule immediately and making changes to Mark to Market this week. Wealth destruction benefits almost no one. A rising market is good for all. I truly believe we are on the verge of something great for our economy if we take swift action. If not look out below.
I am praying there will be swift action to help provide relief for our financial markets.