Subject: File No. S7-08-09
From: Michael Everhart, Sr.

May 5, 2009

Please reinstate the old uptick rule. Its easier to understand and everyone who was investing prior to its removal in 2007 understood how it worked. In fact it had worked just fine in protecting us from the stock manipulation that was rampant in the 20's and 30's for about 70 years

I believe the arena in which the testing occured leading up to the removal of the uptick rule contributed to false conclusions of its value as a protective measure. The tests were performed in a bull market leading up to the highest performance we've seen in the stock market. Why not test the uptick rule in the recent bear market, namely in the scenario in which Lehman and other financial institutions have failed and or were mainipulated in price by unscrupulous investors. Had the uptick rule been in place AND ENFORCED I believe none of what we've scene recently would have occured, or least to the extent that it did.

A reinstitution of the uptick rule, combined with ENFORCEMENT of it and the other laws the SEC already has in place (which the previous administration ignored) would re-establish a level playing field for individual investors such as myself and the professional as well. Maybe even reinstate the uptick rule and add one of those new circuit breakers as well, provided those things prevent investors from getting around the margin rules that are in place too.

I was reading a prospectus from 'PRO FUNDS' the other day, a huge grey booklet with dozens of funds in them but then I saw something about a fund that shorts 2-4 times the amount you invest in it...whats up with that You put in one dollar and you get to short 2, 3 or 4 dollars, how did you all let those get past you Surely that cant be legal?

Enforcement is the key, none of the measures put forth will work if Ms Shapiro does not see to their enforcement. It troubles me when I see the pro's on TV saying that at times there have been more shares sold AND shorted that a company had available If a company has a million shares outstanding and 3/4's are sold and a additional 1/2 million are shorted where the hell did the other 250,000 come from for the short sellers if there was only 1 million to begin with? Let me guess, the funds I mentioned in the precedeing paragraph...buy one share get two or three or .... FREE? Where does it stop?

When I saw the commentators on Fast Money, Fox Business, Jim Cramer, and other writers on Real Money not just allude to this but show charts and figures that proved they were right I gave up and pulled my money out of the market and kept it in cash or bond mutual funds. That was at roughly 10,000 on the dow. I didnt get back in until Dow 6750 and I'm worried now that we will see a repeat of Naked Shorting.

My wife and I are in our 50's she wanted to retire in 8 years when she turns 65. Due to the losses her 401K suffered she's now planning to 'work til she dies'. Our losses were that severe. We dont just use the indexed mutual funds either, we have funds outside the envelope managed by professionals who are good investors and all of them took at least 28% losses or more. When I see prospectuses now with great returns both in equities and fixed income up until 2008 I get suspicious, not all of these folks could be THAT wrong, something else was manipulating the market and it needs to be stopped by strict enforcement

On the 'Mad Money' show Jim Cramer is sounding off on enforcement of what laws are on the books and reinstatment of the uptick rule. He claims that he and writers on his 'Real Money' site have proof that naked shorting when on and that certain funds intentionally spread rumors and or used short selling to mainipulate the market down for their profit at people like my wifes expense. Call him on it Look at his and other professionals data and see if its accurate and if it is PROSECUTE

When heads start to roll the market will ROCK once again

A Vet on state disability somewhere in Michigan