Subject: File No. S7-34-10
From: Naphtali m Hamlet
Affiliation: Investor

January 22, 2011

I am all for mandatory debt swap clearing for a number of reasons.
#1) Less confusion in the market/ and Clearing House. It creats a big mess with the so called Peter pay's paul approach.
#2) It allows the hedge funds and shorts to have longer lasting short seiges that prevents investers from wanting to invest. And that could hurt our economy even more. And it attracts more people to the idea of shorting stocks which is not investing in our economy.
#3) It allows more shares into the market place that should not be there in the first place.
#4) Shorting is supposed to be risky, and allowing debt swaps makes shorting less risky.
#5) Debt swaps make it easier for shorts to pull money out of the market.
#6) Debt swaps prevents the clearing house from clearing transactions.
Would you rather have people shorting the market which is taking money out of the market, or would you rather have people investing in the market which is putting money in the market.
Thank you for looking into this vast problem that hurts our economy.