Subject: File No. S7-08-09
From: Jim Friderici
Affiliation: Personal investor

May 7, 2009

I am in favor as much short selling restriction as possible. Short selling is used by market speculators, not long term investors. Long term investors are looking to fund our retirement and other things and depend upon the market particularly with the demise of defined benefit pension plans.

I think the proposed restrictions are too mild, and the SEC should ban short selling entirely. If one wants to gamble, Las Vegas is open 24 hours per day, 365 days a year. The purpose of the markets is to raise capital and allow Americans to have future returns by foregoing consumption now but investing our savings in the stock market. Short selling has nothing to do with this goal of long term investment.