Subject: File No. S7-19-07
From: Charles M Coppersmith
Affiliation: Study Of Money And Markets

July 19, 2008

Short selling is bad. It artificially holds prices down. It is very counter productive to punish the producers of food, fuel, and materials with unstable and low prices.
The "Strong Dollar Policy" (1992 through 2001) artificially maintained by leasing and short selling Gold and Silver, pushed ALL commodity prices down.
Meanwhile the population grew, supplyline stagnated, and we now have shortages of important things we need, causing abruptly higher prices.
Producers (and savers) have been punished for decades, and we are now seeing the negative results.
When the shorting of gold peaked along with the dollar's peak, in 2001, one gallon of gasoline was equal or down to one gallon of bottled water. (Very bad).
Today one gallon of gasoline is equal to a gallon of milk. (Also very bad) We can't blame the volatility on gasoline or oil or milk.
We can only blame long term short selling, with a 20 year record, 1980 to 2001, of intermittent collapsing commodity prices, that have now inhibited producers to produce.
All shorting should be banned. It doesn't make any sense. If my shares are not for sale, why should a stranger be able to borrow and sell my shares? "Naked" short selling is totally obnoxious to say the least.
Keep in mind, everything in the USA is in reversal mode. They are starting to send many people in high places to jail for not doing thier job correctly.
People responsible for naked short selling should be warned.