Subject: File No. S7-12-06
From: anon investor
Affiliation: individual investor

August 27, 2006

It seems that all the issues reg. SHO is trying to correct are covered in rules established when the SEC was created in 1934.

what's the problem guys? enforce the existing rules

all trades must be settled in 3 trading days. with electronic trading there is near zero chance that shares are "lost in the mail". if a trade fails to settle then that trader cannot make ANYMORE trades period (except to buy those failed shares on the open market). if i'm the sap who bought those shares i want to collect interest (at the maximum rate the law allows).

a "naked" short sale (just like a legal short sale) generates real cash in a traders account. said trader can then use those funds and they are available for margin leverage. this is real tangible value, not an IOU.

if you can't enforce these settlement rules then you must level the playing field by allowing me to do the same thing. i will be watching and if needed demanding that retail investors be allowed to "naked" purchase stock after a "locate" of funds in the form of a possible sale or bank loan. in this new "level" playing field I won't actually have to borrow and deposit those funds, just promise my broker that i could get the cash if i wanted to.

i can then purchase stock in my account, likely i'd purchase dividend paying stocks so i can collect the dividend and then maybe use some of that income to pay for the shares. but maybe not... i'd expect my naked purchases to be grandfathered with no expiration date. i'll pay for the shares when i sell them... maybe.

is this an insane idea? maybe no so much so, get your act together and get ahead of these stock terrorists before it's too late.