Should up-tick rule get re-instated or should it not?
Dow has lost more than 60% from October 2007. Negative news keeps pouring day after day. This has given rise to irrational trading. Short sellers are feasting on long term investors. Big name stocks have turned to penny stocks.
Market needs to stabilize for consumers to regain confidence in the markets. For that to occur, up-tick rule is essential. To make matters worse, the ponzi schemes have eroded savings and confidence from investors. Up-tick rule was in place since great depression and was suspended at the peak of the last bull market. Confidence in market is critical for economy to recover.
Re-reinstatement of up-tick rule will be a great way to boost confidence.