Subject: File No. S7-08-09
From: Bruce McDonald
Affiliation: na

May 14, 2009

You don't inspire confidence when you need commentsthus, suggesting you don't know how to stop the corruption.

1. You need to isolate and prosecute the crooks
2. Stop short selling period. Their computer platform trading has ruined our economy and the "markets"

Company A short shares they don't own..
Company B starts shorting allowing Company A to cover
Company C starts shorting allowing Company B to cover.....

There is no end to it. The program platform traders identify companies and methodically start programs to control prices(by using 4 decimal place trades)and eventually wear down all true investors. They gradually(sometime outright bear raid)control the price and start letting it spiral downward until the company is ruined and all investor money has been taken.

As an investor it happens in 100% of the stocks that I have purchased.

There has to be collusion(and I guess the SEC participates by failure to enforce or adopt any measures), insider trading(they sell with the knowledge of how they are going to cover)

To the investor there are supposed to be finite shares: however in todays markets there are unlimited phamtom shares, then there are index funds(still same number of authorized shares), then there are ETF's(still same number of authorized shares) then there can be outright bets of failures of companies using "credit default swaps". The poor investor/shareholder who thinks he actually owns a piece of a company that is evidenced by a finite number of shares is just kidding himself

My recommendations:
A. on an unannounced basis(although I'm sure you will tip off your friends) stop short selling.

B. Make shares in American companies not subject to borrowing period.

C. No decimal trading(2 digitals)

D. If people don't like companies, make them buy the ordinary puts(at least they will have to have skin in the game)

E. Control the media shills used by shorts/hedge funds to adversely affect markets as hard as you enforce companies from making false laudatory comments on their companies.

F. Mandatory federal tax withholding from all foreign entities.

Step A will prove just how prolific the short positions are in the destruction of America. All of the hedge funds, and the JP Morgans and Goldman Sachs of the world will go broke because the shorted positions won't have enough money to cover their positions.

You're the ones who made the rules that allowed the markets to be destroyed when you eliminated uptick rules and went to unltd decimal was your changes that became the program trading platforms model to wipe out all wealth in America. Your rules wiped out my and most peoples retirement assets and most really good American companies ability to borrow and continue in operation.

GM is broke today because the credit markets and access to them were ruined..not because they made bad cars or because their personnel was union.

You need to get a handle on ETF's and Credit Default Swaps while you are at it.

Offshore hedge funds also.

Guess don't have the manpower and I doubt you have the resolve to actually try to fix the damage that has been done. You will most likely take the advise of the same crooks that helped rig the game the last time.

Bruce McDonald