September 17, 2008
The naked short sale rule was put in place to protect investors.
Cramer today on his show on MSNBC told us how SEC Chairman Cox was directly responsible for allowing stock to be sold short, without borrowing it first, and without an up-tick rule.
The result is that this deliberate short selling, solely to drive an otherwise sound company into financial ruin, has cost the federal reserve a tremdous amount of money! So much that there is talk the entire USA economy is in trouble. Financial short selling will not only bring down the company shorted, also it will bring down companies that deal with them. The FED felt forced to act.
I am glad I am seeing that the naked short rule strengthend. It should be brought back to its full power! Reinstate the uptick rule.
Lax enforcement of these rules benefits hedge funds at the expense of everone else!