Monday, July 21, 2008

Stop Crazy Markets Swings

I keep reading and hearing about the evil short sellers and how we need to stop them...Current SEC solution is to stop "naked shorting". Only problem is it is already illegal to short naked (sell shares you do not own without actually borrowing them, not sitting in your birthday suit trading the Ameritrade account).

Pundits are saying the problem really got bad when, a couple years ago, the SEC abolished the "up-tick rule" (you can only short sell on a stock that price is better than the last price). They may be right...

But, what about the crazy BULL MARKETS we have had recently; we need to stop these "bubble" markets. That why I'm suggesting that we institute a new down-tick rule on all long buy orders. No longer can those evil hedge fund traders continue to buy stocks and make them go up....

Only if we have a true "up-tick" rule for short sellers and a "down-tick" rule for long buyers will we find the "TRUE" market price for stocks...

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