In an interview earlier this year with Bloomberg Surveillance, billionaire Leon Cooperman said that the uptick rule should be reinstated.
Cooperman says there are no stabilizers in effect and that Wall Street ethics have been in decline for years. Investors and institutions should follow the rules in place, Cooperman added, and goes on to claim that the current market turmoil isn’t a war between the rich and the poor, and that the poor can still achieve the American Dream by coming up with an in-demand product and gaining upward mobility. Bloomberg countered that those with assets have continued to see their wealth increase dramatically under the Fed’s regime, while those without assets have missed out, and have less opportunity to achieve their American Dream.
Cooperman pointed back to 2008 when the government started providing life support to the market by creating wealth. Though that was the right thing to do at the time, he says, 80% of the wealth was owned by 20% of the people. Then the government spent the next decade taking the wealth they created away by creating an environment where there’s no return on savings.
Injecting over $1 trillion more into the economy in stimulus and conducting policy focused on getting unemployment back to pre-Covid levels, Cooperman says, has resulted in an unsustainable situation that won’t have a good ending.