May 4, 2009
I have two comments in support of reinstituting a strong uptick rule:
1. The United States instituted the uptick rule in the 1930s in response to the Great Crash. We had that rule for 70 years, and the minute we suspended that rule, we had a complete failure of the market. Plain, common, ordinary horse sense says this rule should be reinstituted by the SEC.
2. The primary argument being offered against re-instituting the rule is that it is outdated and irrelevant. If this is true, then why not restore it? After all, short sellers and market manipulators have no reason to oppose an ineffective rule. The very fact that they are fighting this rule tooth and nail proves that they fear it will eviscerate their ability to profit through market manipulation.