Subject: File No. S7-08-09
From: Craig A. Stone
Affiliation: Soldier

May 5, 2009

I have benefited from the short selling that has been occurring over the last 6 months. I AM the little guy, I made the money I have invested with my blood, sweat and tears (literally). My wife and I spent 5 years positioning ourselves for this market pullback. Now we have waded in amidst the scariness and fear. We have watched our money shrink and grow with the market. Overall though we know that positive market forces will overwhelm the negative ones and this will push the short sellers out and bring in the buyers. The momentum snap down and now starting to the upside has allowed us to invest at what I would call a once in a lifetime opportunity. If there is a proposed modification of the short selling rule I would say to ban it or allow it to exist as is. The problem I see with the proposed rule modifications is that they are too vague to really comment on. One rule change says that short selling will be suspended when there is a severe drop in stock price. What is considered severe? Five percent, ten, twenty thirty? If a stock declines this much in a day then sellers period are going to drive the price lower. By allowing short selling it gives people an opportunity to make some money on the down side. Get it right and make money, get it wrong and lose. Personally I don't participate in short selling. I either want a stock or I don't want it. I appreciate your efforts to stabilize the market but I fear over-regulation will constrain future growth.