Subject: File No. S7-08-08
From: Jeff J Wang, Ph.D.
Affiliation: CEO

March 18, 2008

Naked short shall not be allowed.
Naked short has no difference from selling faked shares for real cash. Fake shares are avialble unlimited for certain insitutions. Naked shorting is irrational in any logic market.
Naked shorting has a few effects that result in illogic, unfair distribution of assets which is no different from robbery.
1. By naked shorting, an institution can flood the market with fake shares, and unreasonably push a companys security down. The more shares naked shorted, the more cash power the shorter would have. With more cash power, they can then short more shares. This endless spiral cycle can drive any companys stock price to zero.
2. Naked shorting can ruin a companys financial health, and artificially destroy the companys financial credit.
3. Naked shorting can be used as an illegal tool to destroy or to severely damage a competitor. It is one way to destroy market economy and keep certain company in its monopoly position.
4. Naked shorting can destroy individual investors assets or long term savings quickly. Honest stock investors judge their investment based on value. Naked shorts find their target and irrationally destry investor's value

Overstock.com is one example.
LDK Solar is another example (LDK on NYSE). Those so called analysts, can pick any topic and keep bashing and slashing a good company. These analysts teamed with trading companies have driven an excellent company almost down to toilet.

In my personal opinion, SEC should certainly take action, to stop this underground or "unpublic" exchanges of fake shares for real cash.