Subject: File No. S7-08-09
From: Mitchell M Johns, Ph.D.
Affiliation: Professor of Agriculture (and small investor)

May 9, 2009

I believe that history will show that unrestricted short-selling was a major force in the near collapse of the financial (banks) (and other sectors) of our investor markets. We the taxpayers have responded by committing trillions of dollars to prevent the collapse of these industries. The outcome of this commitment will be a significant factor in the sustainability of the USA. It is obvious that the financial markets and "main street" are linked. We are currently suffering from the layoff of millions of Americans as a consequence. Yes there are many reasons why we suffered this economic collapse.

It is my opinion that the SEC needs to regulate those practices which threaten the stability of our markets. I support the reinstate of the uptick rule and prohibition of naked short selling in all manners. THE SEC MUST ASK ITSELF THIS QUESTION - WHAT CAN WE DO TO ENSURE THAT ALL SMALL AND LARGE INVESTORS CAN PARTICIPATE IN THE MARKETS WITHOUT UNFAIR ADVANTAGES GIVEN TO INDIVIDUALS AND INSTITUTIONS WHO CAN UTILIZE ENORMOUS OWNED, COLLECTIVE, AND BORROWED RESOURCES? Reinstating the uptick rule will help "level the playing field".

My recommendations include:
1. Bring back the uptick rule.
2. Ban all forms of naked short-selling.
3. Short-sellers should be required to show proof of stock ownership by the start of the next-day Market opening.
4. Margins should be increased to reduce borrowing for short-selling.Inversely, margins should be increased for all purchases as well, especially with Hedge Funds and ETFs.
5. Investigate those institutions/individuals that were major short-sellers when the banks (equity prices) were at very near collapse. Bring to justice all criminal acts.
6. Regulate Hedge Funds and ETFs such that all market trades be identified who, when, where.

Please (SEC) do your duty and "level the playing field" for all Americans who are dependent upon the stability of the markets. This is especially important for pensions --- How long do you want the soup lines and do you want all Americans to work till they die?


Respectfully yours,
Dr. Mitchell M. Johns