Subject: File No. S7-08-08
From: Leo B

July 25, 2008

"Naked" short selling creates an unfair advantage mostly for those who participate in hedge funds: the riches.
It violates the very premise of the Bill of Rights stating that all men are created equal, thus distorting the market. It needs to either be banned with severe monetary penalties for violators, or counterbalanced with the opposite force. For example, exact opposite of "naked" shorting would be "naked longing", when anyone can purchase shares with money that doesn't exist, with no need to have money to pay for it. That would drive the stock prices to the sky. Sounds absurd, doesn't it? Well, that's what "naked" shorting does on the opposite side: selling shares that don't exist, driving them to the ground, enriching the rich and making the poor more poor.
It has to be banned to bring the balance to the markets and give everyone an equal opportunity. That is what this country stands for, right? Or am I wrong?
Your action will speak louder than words.
For now, millions of investors are losing faith in the US markets...