Subject: File No. S7-12-06
From: Michael J Monaghan

July 24, 2006

I am on your side SEC I read a few of the comments and insults hurled at you and I disagree. I am a small investor who appreciates the fact that I can short stock. As an MBA and a former broker, I have not yet determined how short selling hurts anyone, especially the long investor. In fact, there are many arguments that short selling actually helps long investors - would they rather that I really sold their shares? After all, using their arguments then we should also get rid of the options market, especially those evil puts. Naked short selling should be allowed for these reasons and for the fact that liquidity is enhanced. If the brokerage firms want to do it then they should be allowed to since they are the only ones taking on any risk other than the short seller. Please do not allow hysterical investors to intimidate you politically, just explain that NSS is no threat to anyone through press releases, interviews, or Congressional testimony. I am sure that once people really understand short selling then they can cross it off of their evil conspiracy lists.


Michael J. Monaghan