Aug. 26, 2007 (LPAC) - The SEC last month removed yet another restriction against speculators implemented during the 1930's. On July 6, the "up-tick" rule, implemented in 1938 to stop bear raids on stock, was eliminated by the SEC under Chairman Chris Cox, the dear friend of the hedge funds. The rule prevented short sellers of stock from playing their speculative game (borrowing stock to sell on the expectation the stock will fall) except after an up-tick in the stock. This prevented short sellers from ganging up on any one stock. The SEC claimed that such restrictions "modestly reduce liquidity and do not appear to prevent manipulation."

However, Mallory Hill, head of mortgage lending at Novelle Financial Services, told Reuters Aug. 9 that "the hedge funds were very aware of this. They sit around and giggle when this stuff happens. Without the up-tick rule, they can put anyone out of business." Other mortgage lenders, who have a few other good reasons to be worried these day, are also raising a ruckus.