Subject: File No. S7-08-09
From: Michael Larkin

May 5, 2009

Strong measures need to be taken to rein in short selling. If a company is weak, it will collapse of its own accord regardless of whether people can sell it short or not. The current rules allow crushing of stock value far beyond the actual condition of the company.

Most of the banking crisis was created by short sellers to make money at the expense of other investors and taxpayers.

It is in the national interest to have orderly capital markets, so that the economy can grow. It is NOT in the NATIONAL interest that short sellers make money...only in theirs.

Prosecute the naked short selling that has occurred, what are you waiting for?

Restore the uptick rule that prevented this kind of collapse for 70 years, eliminate the exceptions that have weakened it and make the uptick an entire dollar.

If you fail to take strong action to ensure the markets are fair and not just a crooked crap game open to rich hedge funds and insiders, you condemn this country to no to slow growth for years. Retail investors know the market is a crooked game now and they will not come back unless it is abundantly clear that the government will take the crooks out of the game and keep them out.

While you are at it, ban the ETFs of mass destruction that have no legitimate use as an investment. The short ETFs do NOT make their investors money. They are tools of the shorts to crush stocks and evade margin rules.

Ignore the academics about economic efficiency. It is your responsibility to act in the public interest, efficient in the short term or not. Act in the national interest not the interests of big money that has looted the Treasury.