After safely protecting investors for over six decades, a little known SEC rule was quietly removed on July 6, 2007.
With the removal of this rule all the rules of trading and investing in the market went out the window.
One of the reasons for the market's current volatility is a direct result of this rule change.
This major SEC rule was designed to protect investors.
With the removal of this rule, professional traders and hedge funds will be able to suck money out of the market and your portfolio in no time flat.
Why this rule that has stood the test of time since 1938 and was put in place to protect investors was removed is a big mystery.
Why now?
Here's what I suspect happened... some large hedge funds got together and lobbied to have this major trading rule removed.
It's just that simple. Why else would the SEC act out of the blue and remove this very important investor safe guard?
I suspect with this rule change the hedge funds have just been given the keys to Fort Knox.
I made this video last year but it details how this new ruling will effect you. The video explains in every day language what you can do to protect your capital from the hedge fund gunslingers and professional traders.
Watch the video as my guest. No registration required.
After you view the video you will have the knowledge on how to protect your portfolio, while at the same time reducing your risk exposure.
Adam Hewison
President INO.com
Yes, it was certainly not a big stir when it happened. You'd expect something that was in force for that long to create a bit more news. Of course now that we're seeing huge volatility and selling, people will start to take more notice. This is the cost of not being educated
Dean
Crookedness in the investment field isn't new. I actually quit my position at a major brokerage firm when I realized what was going on behind the scenes.
The end of the short sale rule is a blessing for all those who realize that the Emperor has no clothes! Bear Stearns closed at $57 on thursday and now JP Morgan is buying it for $2 a share. Yet on Tuesday Bear said it was solvent . What is the value of JP Morgan or Goldman or Merrill or any of the brokers now???. This move tells me that they are all essentially worthless!!! An Illiquidity Black Hole is stalking the stock markets. Short em if ya got em!
In an effort to bring public discussion to bear on this important issue, I sent out a press release to a large number of media contacts. Here is the press release, entitled "SEC Decision Risks Dangerous Stock Market Instability, Savings of Millions of Americans" -- http://www.americafirstparty.org/news/2007/PressRel2007_08_09.shtml