February 20, 2010
It is very interesting to note that the equity markets had no problems about liquidity during the period when the Uptick rule was in force in spite of the studies made to the contrary. In fact it afforded the equity markets a measure of stability and minimized the volatility of the equity markets and the dangers of short selling carried to the extreme.
The SEC does not have to look far in order to reach these conclusions. It has the records of all these years when the Uptick rule was in effect.
We do not want a return to the days of the Robber Barons and their ilk. The dangers of Naked Short Selling was one of the most invaluable lessons learned during the period before the creation of the SEC itself. This is why the Uptick rule was formulated and instituted. There were cruel lessons learned during the period before the Uptick Rule, something the SEC conveniently forgot, when they abolished said rule.