Why did SEC repeal the short sale tick test rule in 2007? Would this have helped w/ Bear, Fannie & Freddy?

Question

Why did SEC repeal the short sale tick test rule in 2007? Would this have helped w/ Bear, Fannie & Freddy?

Answer 1

Many people in the industry have asked the same question.

Every time the government jump in a do something, the s***w things up and cause more problems that they are trying to resolve.

Removing the "up tick" rule, didn't help short selling but it did create and foster "naked" short selling which has caused additional problems.  No the SEC is looking to "cure" the naked short problem.

The Government, including the SEC are not run by people that understand the industry, but by people who "think" they know better, - just look at our politicians.

The uptick rule would not have helped any stock price.  The Bear. Freddie Mac & Fannie Mae got themselves in trouble for operational problems, the street saw this a decided to dump the stock.  This is true about many company's stock prices.

Answer 2

Because they were paid off