Subject: File No. S7-19-07
From: Bob Smith

January 18, 2008

The naked shorts are trying to kill the insurers
If they succeed then the markets will collapse into the brink

This week both MBI and ABK have been demolished / obliterated- even more than they were in the past

They both tried to raise cash to protect their credit ratings by selling equity- and then the naked shorts stepped in and killed of any chance they had
They drove the prices down so quickly, so violently that they had to scrap their equity offerings

Now what the shorts didnt bet on is even without the cash from stock sales they should be able to weather the storm- but it will be close- too close for comfort.

Those companies are the Achilles heel to this market- if they get taken out then- then every single financial will have to write down more probably more than they can bear The markets will collapse if they get taken out- no exaggeration- the DOW could lose 1000 points in one day- and all the banks that just had to raise billions will probably all disintegrate to the point of no return.

Now as I said- it looks as if the insurers make it out. A downgrade to their credit doesnt make them insolvent, and I think huge bailouts will come their way.

But the real story here isnt the credit or the downgrades- its the brutal illegal naked shorts that are terrorizing- thats right not just stealing but terrorizing the United States
It isnt up to the naked shorts to destroy the share price in order to stop the companys ability to raise cash when it needs it most
Naked short selling is a vicious loophole that favors the criminal elite- this criminal elite DOES NOT believe that the SEC mandated stock settlement rules apply to them

Naked shorts create million upon million of temporary fake shares to quench all demand with an unlimited amount of supply The naked shorts are trying to suffocate companies in their most desperate hour by removing their ability to sell equity to shore up the balance sheet It shouldnt be up to a select few hedge funds to decide which company deserves to live or die It should be up to the shareholders- all the shareholders in the market place The powerful elite Naked Shorters play the role of judge, jury and executioner by printing unlimited amounts of fake counterfeit shares in order to drive companies out of business

The big banks all had prime brokerage units- these units not only looked the other way when naked short selling took companies out such as Novastar, LEND and NEW- but now the banks themselves have been Naked Shorted almost into the abyss- there is no way Citi and WaMu wanted to lose or ever thought they would lose hundreds of billions off their markets caps- almost every single Ceo of a big financial has been fired- I dont think this whole laser tightly focused targeted / naked short selling ploy to take out the middle players such as Novastar and new and FMT went according to plan.

Because of this carnage the banks have had to sell equity at severely depressed prices with massive yields- they have had to sell assets at fire sale prices and they have lost face, prestige, clout, and respect with the implosion of the US equity and capital markets

Do you think the DOW or the NYSE or the SP wants the US equity market to be the worst performing market in the world?
Well guess what? The US markets have severally underperformed all major world markets for 5 years running In just the first few days of 2008 the US equity markets have given up every single minuscule gain (penny) they made in 2007.

How is it the US markets are the worst performing in the world? Lets not forget its not like PE ratios were rich before this recent market takedown.
The SP yield has been less than what a simple passbook savings account would have yielded over a 5 year span

Who is going to come here for capital formation? Why would anyone IPO here? Why are the largest companies on earth voluntary delisting from the US equity markets?

So back to naked shorting and the bond insurers- it seems a well respected CITI annalist has come out and told the world that the insurers have been Naked Shorted
And right on cue- Herb Greenberg and Gary Weiss (the dynamic duo) come out to chastise her- to spit on her- to demonize and belittle her

Gretchen Morgenson your Sunday Times editorial which will smear this annalist- I await this piece with baited breath- I can hardly wait for it

How do we know that foreign hedge funds arent targeting the United States with illegal naked short selling How do we know they arent doing this in order to destroy Wall Street?

You- the SEC- have failed us- you have failed the United States- if you (the SEC) looked the other way while many were trying to willfully destroy the US capital and equity markets through naked short selling that is tantamount to treason