One of the Greatest Crookeries Ever: The Uptic Rule
For those of you who might have forgotten;
the SEC voted to remove the “short sale tick test”, Rule 17 CFR 240.10a-1 for all equity securities.
It became Effective Friday, July 6, 2007; It enabled traders to short all securities on an up, down, or zero tick.
What they really meant was that it enabled institutions to destroy companies at will during one of the greatest economic catastrophes in history. I challenge you to go look at a chart of the S&P500 on July 6th 2007. All was right in the world when this rule became effective. It's almost as if they knew.. What a shame that would be if that were true.
Elimination of the uptick rule
The SEC eliminated the uptick rule on July 6, 2007. The SEC concluded from the study cited above: "The general consensus from these analyses and the roundtable was that the Commission should remove price test restrictions because they modestly reduce liquidity and do not appear necessary to prevent manipulation. In addition, the empirical evidence did not provide strong support for extending a price test to either small or thinly-traded securities not currently subject to a price test. Commenting on the scrapping of the uptick rule, The Economist reported that "short-sellers argue it was largely symbolic, and it remains in place at only a few of the world's big stock exchanges."
And do you know what happened next?
2008 Financial Crisis
A paper from the New England Complex Systems Institute claims that they have found evidence that suggests the 2008 financial crisis was triggered by a "Bear Raid" market manipulation by short sellers against Citigroup late in 2007. The uptick rule was repealed in July, 2007, and the alleged bear raid took place in November, 2007.
If you never had a reason to believe that your elected representatives weren't working for and in the best interest of the people, that would be a good one.
Thank you Cavedraco for that post regarding the elimination of the uptick rule. I cannot understand why more people are not OUTRAGED by that change in the law. As you posted, almost from the moment of that event the destruction of the stock market began. I've said before that Wall Street makes the lion's share of its fortune from violent shorting and then buying/stealing the depressed shares from terrified, beaten-up, desperate longs.
The statement contained in your post, "the Commission should remove price test restrictions (uptick rule) because they modestly reduce liquidity and do not appear necessary to prevent manipulation" is one of the biggest lies and frauds ever perpetrated upon the investing masses.
The complicit criminal element involved is this immeasurable scam should be executed. Rid this earth of this bankster subhuman trash. Can't wait for all the thumbs down on this comment. There is an inordinate amount of the thumbs down element in this stock. Very bizarre and curious at the same time.