Subject: File No. S7-12-06
From: thomas j fisler
Affiliation: personal investor

August 11, 2006

Hedge funds that can "short" without first finding the shares to borrow are a danger to the entire system. Please institute rules which will not allow the large brokerage houses and hedge funds to "game" the system. If the stock system fails, then the entire country goes with it. And the system is built on trust. You know and I know that naked shorting has been used in the past to destroy companies. The problem is, if they get in too deep, they have no option but to short more. At some point though, they don't have enough to cover their losses. Then what? This can have a cascading effect, similiar to the run on the banks in the 30's. Please do not let this happen.

Thank you for your time,
Sincerely, a concerned citizen and investor
Thomas Fisler