Subject: File No. S7-19-07
From: Edward F Schmidt, Mr
Affiliation: None

July 17, 2008

Why do you allow bad behavior to be rewarded? Illegal shorting hurts honest companies, their employees, and the stockholders. I have seen on TV were more shares are shorted than exist or are available.
I believe shorting a stock is fine but not illegally. Manipulating a stock price is the same as insider trading from the outside.
Our financial systems were trusted by the world because they were perceived to be honest. You MUST stop every attempt to destroy our honor and integrity. I believe we will become a footnote in history rather than exist as the standard if YOU allow Illegal or any destructive actions to exist.
Because there is a paper trail nothing can be hidden if YOU want to examine it. There is no gray area for numbers to hid in.
You are tasked as REGULATORS to protect us.
Thank You
Ed Schmidt
201 Timberlane Rd
Clarksboro NJ 08020