Subject: File No. S7-08-09
From: Dennis K Peterson
Affiliation: Actuary

May 31, 2009

The combination of naked short selling and large hedge funds creates strong incentives to drive down individual company stock values. This is a public policy nightmare. In essence it:
1. Encourages betting/piling on a company's stock.
2. Encourages "betting against" American industry.
3. Harms specific company stakeholders in particular and members of the general public who own pension plan assets or mutual funds in general.
3. Favors wealthy investors.
4. Rewards unethical behavior.
5. Puts the SEC in favor of making profits by manipulating the market over investing long in the American economy.

Put a stop to naked short selling. Help put Wall Street on the side of people willing to invest in America.