Is The Crashing Stock Market A Sinister Anti-Trump Plot? One Expert Weighs In

(Tea Party 247) – As the coronavirus crisis rages towards a crescendo (hopefully, at least), it is nearly unanimously agreed that the crashing stock market could leave a much more longer-lasting impact than the virus itself.

But could there be more afoot than simply fear over the virus?

In a guest post for The Gateway Pundit Frederic Sauer speculates that this could be the case.

He begins:

Main Street investors have increased their buying of stocks during the current market downdraft.

Where is all the selling pressure coming from?

Wall Street short sellers are attacking the market to make a killing, tank the economy, and get Trump out of office.

So, what is to be done? He is quite clear: “Trump must reinstate the uptick rule to stop this now!”

Recent data shows that main street investors have increased their buying of stocks during the current dramatic downturn. And yet the market is tanking—the Dow closed down 9.99% today. Where is all the selling pressure coming from? It is from short sellers who are using the coronavirus panic to attack the market in an attempt to steal a fortune from Main Street investors. Short sellers do not have to own stock to sell it. They borrow the stock, sell it, and hope to make money by buying back at a lower price. The short sellers are attacking the market by relentlessly borrowing more and more stock and selling it, overwhelming the Main Street buyers.

This is how George Soros made a fortune by short selling the British pound.

As the market goes relentless lower and lower, Main Street buyers are pressured to sell as they see the value of their retirement assets tanking. This further feeds the downdraft to the advantage of the short sellers.

He goes on to explain that just a few more days like those we have seen this week, and Main Street investors, particularly those nearing retirement, could pull their money out of the stock market, taking significant losses for themselves and giving profits to short-sale traders.

The solution is simple, Sauer explains.

“Trump must reinstate the uptick rule.”

He continues:

The uptick rule worked great from 1938 to 2007. The current modified uptick rule in place since 2010 doesn’t work. Reinstate the uptick rule and stop the short seller attack.

The Uptick Rule in place from 1938 to 2007 prevented a short sale of a stock unless the previous trade caused an increase in price (an “uptick”). It was put in place by the Securities and Exchange Act of 1934 in response to the stock market crash in the Great Depression to prevent future attacks on the market by short sellers.

The rule was eliminated by the SEC in 2007, and the market crash of 2008-09, which was in part a short seller attack, followed almost immediately. The resulting crash absolutely helped Democrats win in a landslide in 2008.

In response, the SEC introduced the “Alternative Uptick Rule” (Rule 201) in 2010, “which imposes restrictions on short selling only when a stock has triggered a circuit breaker by experiencing a price decline of at least 10 percent in one day.”

Individual stocks are falling less than 10% each day during the current market decline, so they are not yet triggering a short selling uptick restriction.

Stocks are declining 5%, 7% or 9% each day for several days in a row, but not yet 10% in one day, so the short-seller attack on the market can continue.

To reinstate the uptick rule would put an end to the short sale attack, and the market downdraft would stop, Sauer concludes.

22 COMMENTS

  1. I called this about 2 years ago because I know how the liberals operate – ruthlessly. I said that the stock market was going to tank going into the election year and it has started. Question is – how ruthless are the ones pulling the strings???

  2. Tom, I have said this since it first started….Soros is an evil evil man and is all about bringing Trump down and ruining this great USA. Where are the terminal patients when we need them. (Just kidding)

  3. The globalist are doing their best to destroy President Trump and the American people. Just remember that in November come voting time. What negative effects have they had on your retirement savings and your families. They care nothing about the American people or America as it was founded. They could care less if you lose your home or job as long as they accomplish their evil plans.

  4. …I absolutely believe that soros, his fellow globalist freaks AND the chicoms conspired to release the covid-19 virus in order to cause massive chaos and millions of deaths in their vile effort to thwart the middle-class rebellion that has happened around the world since 2016…President Trump needs to do more than reinstate the uptick rule…he needs to do the same thing to the fasciscrat crime syndicate as he has done to the muslim barbarians…wipe ’em out…

    • Tom, I have said this since it first started….Soros is an evil evil man and is all about bringing Trump down and ruining this great USA. Where are the terminal patients when we need them. (Just kidding)

  5. The Demorats have figured it out. If they can crash the market now, President Trump gets blamed. However, if it remains intact to the election where the Demorats will try and if Succeed in getting their Demorat in office, they will not be as successful in blaming President Trump for the fall of America by their policies and they know it.

  6. In my opinion, all short sales should be illegal, with 10 times the penalties attached to insider trading, which I think is overblown. I say that as one who has never had access to such information, never will, and is regarded as a victim of such. Short sales makes victims of all. To use short sales to control a coming election, is TREASON!!!

  7. DO ya think? The last gasp of the DIAPERCRATS trying anything to take our President down. Won’t work idiots, he’s handling everything you can throw at him! Give it up, TRUMP 2020 and beyond!

  8. This is the thought that it’s rolled around the minds of many conservatives, that the demonically evil very rich and powerful will do anything bar nothing to take over not only this country but the world as they are doing basically the same things around the world including Israel we are trying to oust Netanyahu on fake charges like they did Trump! There are no mistake they’re involved in the shootings in this country to get the guns away from the people do if you think they have a problem killing 10,000 kids to get the play on the heartstrings of America to take the guns away well their motto is the ends justify the means! Make no mistake they have the money to manipulate the markets they won’t get hurt but the little guy will I want to destroy the little guy anyway! Think of all the men and women who died for this great nation that we stand by and let them have died for nothing because we won’t protect what they died for!

  9. Crashing the stock market is definitely a Democrat ploy to turn people against President Trump. The Dems will stop at nothing, it’s just one corrupt tactic after the next to get their way. They are totally evil and disgusting. The Democrats have no business in our government.

  10. It would probably be a safe bet that George Soros has instigated the current “short sale” on the market, if he in fact is not solely responsible for it! Any takers?

    • Yes. Soros is a master manipulator as his history proves. He has a LOT of supporters for this kind of a move and the Covid-19 coronavirus provides a perfect cover. Trump can reinstate the uptick rule and let’s pray he does. Soros must be outed, tried, convicted. An international crook.

  11. I’m not a genius but, THIS THOUGHT CROSSED MY MIND! The demonrat will do whatever it take, to remove President Trump!

  12. With a degree from Wharton School of Finance, I’m sure he is considering and weighing all avenues. He may not be an eloquent speaker (most people aren’t without a script), but President Trump is an economic wizard!

    • I think the president knows exactly what is taking place. And i pray everyday that those big money people that are trying to take this country down, lose every cent they have and it all goes to the poor.

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