Friday, December 19, 2008
Restore the Uptick Rule, Restore Confidence - WSJ.com
As the article says, "a shortsighted move".
I'm not surprised. It's the way government works...
I'm not surprised. It's the way government works...
Charles R. Schwab discusses it in the Wall Street Journal:
"The last time the stock market suffered from extreme volatility and risk of market manipulation as severe as we are experiencing today, our grandparents' generation stepped up to the plate and instituted the uptick rule. That was 1938. For nearly 70 years average investors benefited immensely from that one simple stabilizing act.
Unfortunately, in a shortsighted move, the Securities and Exchange Commission (SEC) eliminated the rule in July 2007, just as we were about to need it most. Investors have now been whipsawed by what appears to be manipulative trading, what we used to call 'bear raids,' which drive stock prices down without warning and at breakneck speed. Average investors feel the deck is stacked against them and are losing confidence in the markets.
For the sake of our children and grandchildren, and to avoid a needless future repeat of a bad situation, it is time to restore the uptick rule."
