Subject: File No. S7-08-09
From: Kevin M Corcoran

June 16, 2009

If you want an actual example of why short selling should be severely curtailed just look at Eagle Bulk Shipping which has been driven down over 38% in barely a month even though they made .37 a share and have an upgrade from Dahlman Rose with a target price of $11. Last time I checked, 15 - 17% of the shares were short. Ridiculous, and the all the while the SEC sits and twiddles it's thumbs. Let's give a big thumbs up to and Mike McDonough for leading the way on the downward manipulation given he has written for "TheStreet" 17 negative dry bulk shipping articles in only 21 market days. He frequently targets Eagle Bulk along the way.

My recommendation would be to cap the number share short for any small cap stock at 4-6%.

Thank you.