Subject: File No. S7-08-09
From: Erwin Aldinger

May 12, 2009

I'm tired of reading comments about how beneficial short
selling is. If it leads to price discovery, how come the market plunged to 6300 and then bounced back thousands of
points in 2 months? Was 6300 a real price? Heck no.
It provides liquidity? Yeah you can give your investments away at the bottom and help some short profit from his bogus transaction. Who needs that kind of liquidity?

Every short sale results in two people owning the same shares. That's why it seems bogus to me. The original owner still owns them according to his account statement, and the guy who just bought them from the short seller also now owns them. How can prices be set by supply and demand when short sellers have inflated the supply?

Let's stop being so fair to the hedge funds. Fix our broken
market. Uptick rule plus halts to all short sales if the DJIA is off by 200 points in one day.