Subject: File No. 4-627
From: naphtali m hamlet

May 6, 2011

I am thoroughly dissapointed in the SEC., for allowing the short interest in the U.S. stock market to get to the 50% threshhold. Any more shorting above 50% would mean that the stock market's glass is half empty. And most of the shorting is from people in other countries, pulling Americans money/retirement out of our portfolios. And these foreign short sellers do not pay taxes on the money that they pull out of the U.S. stock market. But, the U.S. gov. pays the U.S. citizen for their losses. We have a huge aging population that has their life savings in the U.S. stock market in order to use that money for retirement. How can the baby boomers retire if the SEC is not regulating the stock market? And if it is not safe for Americans to put their hard earned life savings into the stock market in order to invest in companies in order to help those companies grow and produce jobs so that the investor who is saving for retirement can share in the growth of the company. Shorting is a drag on the economy and the SEC does not make a good watch dog. A unregulated stock market breeds crime. And the frankensteins grow to become bigger monsters with better tools and and they conspire with each other in order to cause more harm to our financial well being as a nation. This unregulated short problem is a national security issue. The country that protects thier citizens from financial criminals will benefit the most in the problem of a aging population of the world.
If the babyboomers retirement portfolios were to recover from this unregulated shorting, then they would feel like they could stop saving so much and have a chance to retire. Instead of saving so much, the boomers would start to spend money. And that money the spend would create jobs. Then the people who got the new jobs would spend money, and that would create new jobs.
So allowing all these debt swaps in order for the short seller to not have to buy in when they are supposed to in order for them to rape the market of any progress is a crime. Naked shorting/ dark pools/netting and debt swaps and flash trading are nails in a financial coffin.
A short sellers strategy is to short stocks down in order to hit peoples' stop loss triggers and then to continue to short more and to hold it down for extended periods of time in order to go on message boards and tell the share holders to sell. They say its a fraud, scam, who would buy this dog. They lie to get longs to sell. Shake the tree hard till every apple falls mentallity. Naked shorting and debt swaps and dark pools allow this crime. And are the American citizens supposed to feel confortable investing their hard earned money in a market that caters to short sellers? How will investors and companies bennefit with a SEC watch dog that is asleep? Wake up SEC, 50% short interest in the stock market is way too high. 50% of money in the market is shorting = bad economy and financial harm to the citizens that you swore to protect.