Subject: File No. S7-12-06
From: Bruce Thompson

April 17, 2007

Hedge funds now have over $4 TRILLION dollars to bet against you in the market. That is a 4 with 12 zeros after it. Not one dollar of which is regulated in any form.

THE ANNUAL BUDGET OF THE UNITED STATES GOVERNMENT IS ONLY $2.8 TRILLION. NEVER, IN THE HISTORY OF THE WORLD, HAS SO MUCH MONEY BEEN CONCENTRATED IN SO FEW HANDS. IT IS ALL UNREGULATED AND IT MAKES YOU WONDER WHO, EXACTLY, IS RUNNING THIS COUNTRY?

They used to be able to control the share price of any company they went after. Now they are too big. They simply cannot generate the massive profits on that huge cash base with attacks on single companies anymore.

Now, they are taking on entire sectors. Using naked short selling and options on the ABS Indexes, they have effectively cutoff funds to the subprime market and, through the media, they have startled the investors out of their retirement investments by creating a crisis that doesn't exist.

The real question is where will they go next? After destroying the subprime market and with it a substantial portion of the real estate market, where to next?

I mean there is a lot of money sitting there that MUST generate a substantial return. What's it gonna be? The auto industry? The steel industry? How about cities? Hey naked shorting municipal bonds ought to make some money. But there aren't enough being sold right now and most investors want to see the actual bonds they bought. We can't naked short the bread and butter IPOs anymore because they go to Europe where it is safer for them to enter the market. Maybe we should consider taking down a country.

Yup. That's the ticket. Let's see if we can take down Brazil. We could use derivatives to undermine the currency and the media to undermine the government.

Nope. that's been done already.

Hmmmmmmm????

Wait

20 to one leverage on $4 trillion????? Lets take on the US Dollar. The Treasury won't know what hit them until it's too late.........................