April 20, 2009
The Return of Uptick or Son of Uptick or Uptick II whatever:
The uptick rule (established in 1938)needs to be reinstated. It should never.... and I mean NEVER been removed in 2007. BAD and uninformed decision (Better known as a massive "screw-up").
I would not hesitiate to say that the absence of the uptick rule played an important part in the Bear Stearns and Lehman Brother collapse. "Bear Raids" should never be permitted. Unless of course you are doing someone a favor by permitting them to do so. Gee.... Could that possdibly be??? Don't be stupid.
As you are aware, during the financial collapse Britain was intelligent enough to ban short selling of financials. We did not do so. The return of the uptick rule was called for but was ignored. Now with the market in the 8000 range it is being called for again. I wrote my congressman about this over three months ago. Got the usual "reply letter number 6" answer. Not surprising.
The House Financial Services Ccommittee chairman, Barney Frank, has stated that it may be reinstated in a month. You folks need to get your head out of the economic sand and get the job done. Should have done so about 3000 points ago. You can analyze this until forever but unless you have enough strength of character to admit the 2007 decsion was wrong we will continue to have the wild swings in the market where short sellers can hammer stocks with impunity. That is insanity at best. Put the uptick rule back and be sure to require an uptick of at least 10-25 cents as before. Do it now.
Unfortunately, I majored in Economics (the dismal science) and I feel like I am marching uphill in a mudslide with you people. It gets pretty dismal STANDING STILL IN THE MUD out here. Let us get on with it. And do not send me reply number 6. We will know if you are doing your job.