Subject: File No. S7-08-09
From: Van Cornelius

May 6, 2009

I have just read probably about the first 25 comments posted (all in favor of general limits on short selling). They confirm (by a large margin) my opinion as to the ignorance of the average citizen. Unfortunately politicians act on this ignorance, rather than leading and educating. I know of no evidence that short-selling drives the market or stocks down in any significant way for any significant duration of time. Stocks driven below their fundamental value will attract buyers. Short-selling should have no effect upon long-term investors, contrary to the ill-informed opinions expressed by a number of writers, who provide no real evidence for their belief. As for driving down bank stocks last year, their own lousy portfolios of non-performing assets which were being increasingly exposed drove down their stock prices, not short-selling.
I hope that you will not be swayed by this outpouring of baseless populist opinion from the ill-informed nor their political servants.