Subject: File No. S7-19-07
From: Paul Davis

July 16, 2008

With regards to your proposed short selling rules, I am curious as to why you are not enforcing the same for all stocks? Why is it now necessary to highlight U.S. Financials?

As an investor, and not a short seller, this latest action speaks volumes as to the end of free markets within the United States. I do not short stocks, I never have. Free markets are supposed to allow the profit or loss from one's opinions. If people are shorting stocks and spreading rumours, it is up to oneself to investigate the rumours before deciding to invest. Short activity provides market players with valuable information as to take another look at your investment decisions. If short activity is high, I ask myself, have I missed anything in my analysis? I remind you that an Analyst's Estimate is nothing more than an opinion an idea that this might happen. I look at it, but I don't base my decisions on it.

Nonetheless, enough. If the United States SEC is going to change the rules of the game because the game is not going to their liking, I refuse to play any further. How can I trust that the intelligent investment decisions I make with the information that is available to everyone (if they decide to read it is their decision) becomes a risk due to the powers that be not liking my decision and taking actions that cancel my abilities to make future investment gains? So from Canada, I will no longer trust nor participate in the U.S. capital markets. I urge all other investors to turn their back also on these markets.

The SEC will not stop this problem, if indeed it even exists. Foreign exchanges and bourses will become available that's what free market do - they find a way to operate.

Indeed, these actions speak louder of the manipulation and corruption within the investment community more than the supposed violations they are intended to address.