The Daily Bail

Less than 2-minute clip from Barney Frank.

The uptick rule change will NOT work because trading happens too quickly on too many independent exchanges. I can't even imagine how it will be implemented and enforced. Does an uptick on ARCA satisfy the requirement if I'm trading on a different exchange?

I'll find the link later, but the reason this rule was overturned in 2007 was the problem I mentioned above. Modern stock trading occurs electronically on several large exchanges that operate independently of one another. In a nutshell, there is ALWAYS an uptick somehwere.

I suppose it's natural to look for a scapegoat when stocks are falling and 401Ks are shrinking, but focusing on short sellers is a mistake. Stock prices mirror profits and profits are falling. The S&P 500 combined earnings for 2009 will come in between $40-50 this year. Slap an appropriate recession PE of 10 onto those numbers and you'll see why the market has much further to fall.

I'm sorry to say it, but too many professional and retail investors are clueless. From Bill Miller and Ken Fisher to the guy down the street. Not enough people understand the massive destruction of corporate profits we are seeing and how this automatically translates into lower equity prices.

Do not fight the tape and do not under-estimate the trend of falling earnings. And most definitely, do not blame short sellers for our market declines. It's profits, people. And nothing else.

It's my birthday, so cut me some slack on posting today. Happy birthday to David Faber as well.

After the jump, we have a Fast Money market-close clip from CNBC with Dylan Ratigan and Jon Najarian.