Subject: File No. S7-08-09
From: Michael Mullins
Affiliation: Private investor

May 5, 2009

As a private investor for the past 4 years I have become increasingly aware of the impact of short selling on the markets. The capital markets should be a place where companies can go to find investors to help fund operations and growth. Short selling is not investing, it is gambling and detracts from the stability of capital markets. Short selling can also endanger the viability of companies and creates a great risk for new firms that use stock to fund growth.
The problems since July, 2008 are well known (bear raids, naked shorting, manipulation of stock and Credit Default instruments). As an investor and an American that wants to see out country healthy and growing, I hope the SEC will SEVERELY RESTRICT short selling. Meek versions of the uptick rule are not enough. Allowing exceptions for ETF's that short, in some cases with 2x and 3x margin, is absurd and entirely undermines any restrictions otherwise made.
America's capital markets should be for investors, not gamblers. Please reign in short selling.

Mike Mullins