Subject: File No. S7-08-08
From: Guangjiong Chen
Affiliation: TA in att

April 16, 2008

Naked Short Selling Comments.

Naked Short Selling is a practice that should never be allowed as it is simply a way of artificially creating additional shares that dilutes the value of a company. I have seen how it works, I have read many documents in which it clearly explains how Naked Short selling is used to manipulate the value of the share prices of a company. Market Makers and Hedge Funds robbing the American investors of their investments by creating millions of counterfeited shares that are never repurchased, hence they are effectively selling Counterfeited Shares without having to replace them with the purchase of an actual share. This practice should have never been allowed and it needs to come to an end immediately.

I have invested a great portion of my 401K savings and other personal funds in a very good company called LDK (LDK). This stock has been beaten to the ground for the past 3 months by The Big Money without justification. This stock has been on the REG SHO listing for 103 consecutive days with over 8.3 Million shares shorted. Considering that there is a small number of available shares, less than 35 million available to the public, this means that roughly 25% of the overall float is short. How can that be possible?? As long has these Hedge Funds and MMs are not forced to cover their short positions, the printing of the illegal shares will go on for ever and will drain small investors life time savings.

Why does the SEC allow this illegal practice to continue? What ever happened to the basic principle of Free Markets. How is a company going to be properly valued if counterfeited shares are allowed to be created and transacted with a devastating dilutive effect on these targeted companies? How many more examples does it take to convince the SEC that this great nation called The United States of America does not have free markets?

I watched the video from the SEC a couple of weeks ago addressing Naked Short Selling and it was, for the first time, publicly said that it is illegal. I think it is the right step in the right direction. However, considering that Naked Short Selling is already illegal, why is it still allowed to continue? What will be different this time around? Will the SEC be proactive and force all short sales to be covered in the time allowed? Will the SEC monitor and police this as they should? Will Hedge Funds and MMs be subject to not only fines and fees but also held liable for share holder loses caused by their illegal actions? Will the SEC treat Counterfeiting of Shares the same way as Insiders Trading, which is subject to Jail time if found guilty?

Having rules and enforcing the rules are two different things. If the SEC is going to stop this counterfeiting of shares known as Naked Short Selling, we hope that the enforcement of the rule is strong enough to deter the practice and it is subject to punitive damages as any other type of Fraud.

I know I speak along side the millions of small American investors supporting stronger language and stronger penalties for the financial institutions that are engaged in this Naked Short Selling illegal practice.

Please stop this practice once and for all.

Sincerely,

Guangjiong Chen