May 27, 2009
When you favor the short sellers, it is like rooting for a team to lose, or rooting for a quarterback to break his neck.
The short sellers are favored now, and that is bad for the economy. If there is a bias, is should be slightly in favor of long investors. For one, short sellers are sophisticated enough to overcome a slight disadvantage. But more importantly, favoring short sellers is paramount to rooting against the US economy. Dont we want to give the edge to supporting the economy?
Not only should the up tick rule be reinstated at around five cents, short sale circuit breakers should be instituted, AND short sellers should be subject to all the same reporting requirements that long investors are.
Also, could you for the love of god please enforce the existing rules? How can the SEC find nothing suspicious about greater than 100% of a companys outstanding shares being shorted? Naked short selling is illegal. Frankly, the SECs complacency on this issue makes the organization look ridiculous. And it undermines confidence in the US markets. Some prosecution would go a long way to restoring confidence in the US markets.