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Cramer: Speak Up on the Uptick Rule

Stocks in this article: BAC FAZ SPY

This is it, the last time to make your voice heard if you want the playing field to be the same level as it was before the Bush administration decided to give the edge to the shorts by getting rid of the uptick rule.

For a month now, we have been circulating a petition to bring back the uptick rule, in full, without any loopholes that shorts can then drive a truck through.

Why is this so important? I think the deregulation of the securities markets by President Bush and now the most discredited SEC chairman in history, Chris Cox, produced the lax environment that ultimately ended up costing taxpayers billions of dollars because many good banks were not able to refinance using equity capital because shorts were able, systematically, to knock down stocks to absurd levels simply because they didn't have to wait for a buyer to surface.

Now, I know there are many people here who want to debate the merits of the rule. I can tell you that as someone who made multiple tens of millions short with the rule in place, it is simply not an imperative that this government allows the shorts a chance to bash down the longs. The short-sellers never needed this edge.

They got it because, somehow, Bush and his cronies actually believed that the real reason why the government instituted the rule -- the ease with which bears could scare and intimidate longs into panicking and selling and thus wrecking the ability of the capital markets to perform their primary function -- had somehow been repealed.

Worse, the SEC relied on academic studies done at the absolute top of the greatest bull market ever by professors who have never been on a trading desk and had no idea what can really happen, and what kind of havoc a seller can inflict on a market, particularly a rabid one who needs prices lower to perform.

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