Subject: File No. S7-08-09
From: Stewart B Waintroob
Affiliation: Adjunct Accounting Faculty - Mesa Communitty College

May 5, 2009

It should apparent by this point that FDR, Messers and Glass Steagal, and Secretary Kennedy got it right in the 1930's. Free markets work when regulated between the the margins. One cant legislate greed, but they can legislate destructive actions based upon greed. With respect to the uptick rule, and naked short selling, it is clear that if we want functioning capital markets capable of funding business needs, the markets should not be allowed to behave as if the NYSE was a casino.

The uptick rule worked wonderfully from 1937 until Mr. Cox decided to abolish it in 2007. Without orderly markets were turned into avalanching sell orders, some employing naked short selling as well, which enriched a few hedge funds doing business in the shadows, while destroying the very businesses the markets were meant to serve.

The lack of a rational, orderly market also causes investors to stop investing because they lose confidence in basic fairness of the system

Please reinstitute the uptick rule and seriously crack down on naked short selling.