As I frequent short seller I hated the up tick rule . Think of it this way , more shorts can mean more shorts to get squeezed for all you longs!! And I have been squeezed more then a damm Orange
Feds are going to squeeze the margin/liquidity out of the hedge funds.... No more 20/30-1 leverage...come back in to 10-1???? Maybe 4-1 just like all other "daytraders", LOL That process is already under way big time.... Art Cashion spoke of it this week.... The Bear Stern situation was a giant wake-up call from Ben... There is a lot of shufflin' around, hat in hand, "yassir Mr. Ben, whatever you want".... That is quicker and easier than short tick rule...which may be modified somewhat. Who knows... But, the game is going to change.... SteveD
Yes, uptick rule should be re-instituted Too much manipulation in the market in the last couple of months. Look at the financial stocks like LEH. Without uptick rule, market can easily pushed around.
Subprime mortgage lending is what has caused the problems on the street, not too much leverage to hedge funds. Investment banks bought low quality mortgages, mixed them with AAA paper and resold the toxic mess as CDO's. They sold them to foreign banks and both foreign and domestic pension funds. These institutions now have trillions of dollars of bad investments. The IB's on Wall St. would have been fine, except that word got out about the garbage that the street was peddling, and everyone stopped buying. So firms like Bear Sterns were caught with billions of dollars still on their books, unable to find another sucker to buy a CDO. They never intended to hold this crap; they just want to make their commission. So these fraudster thieves are now being bailed out by the fed, instead of being sent to prison with Bernie Ebers. It seems like the charlatans such as Cramer are trying to change the subject, and blame all this mess on the uptick rule. What a sick joke. And you idiots are buying into this? The uptick rule? Don't make me laugh. It looks like the street is going to get away with the biggest fraud in history. IMO, the top 5 people in all of these firms, including Goldman Sachs need to spend 10 years in prison on bread and water.
I had listened to it for the second time on your prompting and seriously, ever sentence that comes out of his mouth is false, total conjecture, and extremely irritating in the way he seems to "know it all." And yes, he does put blame on the repeal of the uptick rule for the raids on LEH and BSC. He also blames the rule, at least partially, on the market decline over the past year. Maybe you need to relisten to it yourself. And your point is total conjecture. There is no proof that the repeal of the uptick rule has exacerbated anything. It is a total joke. As an individual investor, I love that there is no uptick rule for hedging purposes of my investment portfolio. You are advocating taking away my rights to a fair market? It seems to me that this boils down to individual freedom, and I want the freedom to act how I please. I don't understand people willing to give up their freedoms - I suppose you like the Patriot Act too?
We've been trying to get settlement of securities, as mandated by law, for over five years. They still won't do it, while admitting it's a problem. Yet, out of the blue, they blow off a 70 year old rule. Ask yourself who was behind it, and why. Who brought it up? How come? If it looks like a duck................. Don't worry . It'll be repealed in a heartbeat. The politicians are under huge heat. And Cramer is trying to cover his ass. That is what that speech was about.
A rule that should never have been implemented in the first place. Do you even trade? Do you not hedge from the short side? Do you not appreciate that you do not have to wait for an uptick to get short? There is a difference between now and then, and now it makes trading more convenient, nothing more, nothing less.
Triple X is spot on. This just highlights the media's main role of misdirection. Those who know the truth, or can read through the BS, are the ones that come out on top. Good luck!
Okay, for you perma longs and Cramer lovers, what do you say now? What will be to blame when the market drops now?