Subject: File No. S7-08-09
From: Peggy L Staat
Affiliation: Disabled/part-time worker

May 10, 2009

I totally agree with Letter Type A.

Short selling has produced WEALTH DESTRUCTION. If you do not understand the concept of WEALTH, Read: The Age of Uncertainty by John Galbraith – his book explains what WEALTH is. Galbraith was a wonderful writer who truly sought to educate any person on the subject of economics. ANYONE can read his books and understand the subject.

I believe that:
-- Short selling caused wealth destruction for:
-- entire companies
-- individual investors - 50% of population via 401Ks, IRAs, stocks
-- our entire country
-- our world economy

I believe that this wealth destruction caused:
-- The unbelievable $700 billion dollar bailout – without short selling, we would have had a mortgage LENDING issue to deal with.
-- Instead wealth was destroyed throughout: the entire stock market, sometimes eliminating stock investment dollars for companies needing that resource to operate yielding job loss and further home ownership destruction. ARE YOU KIDDING WITH THE ACADEMIC RESEARCH, THE INPUT OF LARGE INVESTMENT FIRMS AND HEDGE FUNDS??

I believe that the following shorting activities which DO NOT support WEALTH CREATION in our country be changed/eliminated:
-- Reinstate the uptick rule from the great depression
-- Abolish naked short selling – same as FRAUD?
-- Abolish double and triple short ETFs

As it stands, large institutions can cause a stock to go up earning profit for themselves and then profit again via short selling leaving companies and individual investors AND WORKERS/HOME OWNERS holding the bag.

As we have seen, short sellers have a BETTER THAN EVEN CHANCE AGAINST INVESTORS calling themselves Professional. ( Years ago, professional might imply a person of ethics and integrity – sadly, this is no longer true. )

SHORTING DOES NOT CREATE WEALTH, IT DESTROYS WEALTH hampering investment and supporting casino-like day trading activites and speculation in turn, harming the present and future of all who live - in the US and in the World.

Also, why is it that the President/CEO of a company can also be Chairman of the Board? THIS IS A DIRECT CONFLICT OF INTEREST.