Subject: File No. S7-08-09
From: Mark A. Schoenenberger

May 5, 2009

I understand that the SEC is soliciting opinions about the efficacy of short sale or circuit breaker restrictions... My opinions are as follow:
1. You're missing the boat!!! The real action (danger) is in the OTC interest rate and credit derivatives markets. When is the SEC or some other federal agency going to take responsibility for the $700 Trillion gorilla?
2. When is the SEC going to investigate and prosecute its involvement in some pretty spectacular frauds, ranging from Enron to Bernie Madoff?
3. The real problems with short selling, are precisely the same as the OTC derivative market: little counter-party guarantee on the trade, little supervision as to whether the underlying securities were indeed "lent" by the owners.