Markets: Yahoo: Trash Talking and the "Uptick Rule"

Click on the post for an interesting video from Jim Cramer on the "UpTick Rule."

Right now on Wall Street we are seeing a pattern of bear investors taking positions in "Puts" and then trash talking the stocks down, creating a panic of sentiment and rumor, and then profiting from their positions in puts. In some ways, this the is the flip side of pundits that go on shows and tout their positive beliefs about a certain stock.

After the Crash of 1929, the federal government passed the "Uptick rule that allowed for a short or a put to be placed only after an uptick in price. This had the effect of reducing the piling on by speculators that occurs in a panic. This is one more rule that was removed some time back when times were good and when people forgot why they existed. We do need to bring back this rule. That is how I see it, and I was pleased to hear Cramer's analysis.