Follow this link to a definition of the uptick rule quoted below.

A former rule established by the SEC that requires that every short sale transaction be entered at a price that is higher than the price of the previous trade. This rule was introduced in the Securities Exchange Act of 1934 as Rule 10a-1. The uptick rule prevents short sellers from adding to the downward momentum when the price of an asset is already experiencing sharp declines. The SEC eliminated the rule on July 6, 2007.

The new rules just put in place to stop naked short selling is an attempt to undo the damage of eliminating the uptick rule in 2007.  I wouldn’t be surprised if the elimination of naked short selling yesterday had a very large part to do with the rise of the market.  This is just another example of how the current administration’s penchant for unregulated markets can harm the economy.

So, if you hear the right wing bloviators trying to blame the current financial problems on Jimmy Carter, remember which administration eliminated the uptick rule.  What Jimmy Carter did is at least 28 years old.  What George Bush did is just a little over 1 year ago.  When looking for a cause, why skip over what happened a year ago and search back 28 years for a reason?