Subject: File No. S7-19-07
From: Keith Kottwitz

July 31, 2008

The fairest way to set the true value of a company is through equal trading of their equity. Allowing an unlimited supply of false stock to increase the sell pressure is not equal and fair to their value. ETF managers who maintain the 401k accounts for millions of American workers and the retail investors do not have the ability to falsely drive a stock up with false money to buy with. This is allowing only the most powerful investors to use day trading techniques to falsely set prices that is contrary to the premise of a free market.
I urge you to extend the borrow requirement across the entire market. If a company is indeed over priced, the requirement to borrow shares and short them in a day or two will make no difference. The companies will still reach the same price that they deserve to be at in a free market without any losses to the short seller unless they are truly in error.