Subject: File No. S7-19-07
From: Kevin Dalton

July 16, 2008


It appears to most that the Reg Sho is not working as designed. And why is that? Because, large customers of the MMs are allowed to "borrow" their right to naked short through a complicated series of options transactions.

Now that Fannie Mae and Freddie Mac seem to be suffering the same fate that many stocks, especially smaller ones have, the SEC wants to call a halt to naked shorting on them.

Well, you are either dumb or corrupt or both. Naked shorting, in spite of what the big MMs say, is not used to "enhance liquidity" it is used to move stock prices and ensure that the MMs and their large institutional customers who like to short make tons and tons of money.

Personally, I think that the entire SEC should be tarred and feathered for the job they have done over the years.

If that sounds angry, you are getting the idea.

Doing good is good business, and having a fair market increases confidence in the market. The perception now is that the market is so unfair to small investors, that the best alternative is to go elsewhere, either London, or to the Asian markets to invest.

Best luck to you and all your friends,

Kevin Dalton