May 4, 2009
The 2007 elimination of the UpTick Rule was the worst decision the SEC ever made. Close behind is the non-enforcemnt against naked short selling.
The UpTick Rule slows down manipulation and allows for a orderly market and removing it returned our market back to the boom and bust manipulation that caused 1929. How much of the wealth of America has to be lost before the SEC realizes its mistake and reinstates this rule and stops the naked short selling? Lehman and Bear might have survived and the world economic crisis lessened.
The UpTick rule had worked well for 70 years. There wasd no good reason to end it. The decision to end it was a great mistake. It turned our market from a wealth creation market to a wealth destruction market.
We need the strictest possible UpTick rule and strongest enforcement against naked short selling. No exceptions should be permitted.