Subject: File No. S7-19-07
From: Alfred Salkovics
Affiliation: Private investor

July 19, 2008

I am 71 yrs old and have been an investor for most of those yrs. I am nervous about the general stock market and have bought some gold shares in my IRA returement acct. Among them are some small cap gold stocks. They are down by 50-60% while gold has moved up considerably. My believe is that this is caused by NAKED SHORTS by hedge funds and brokerages.

Reg. SH is NOT working and must be modified. "investors" need to prove they have borrowed stock to short and brokerages need to confirm this. Primary dealers should not have an exemption as I believe they may be the biggest culprits.

Please change this loophole AND enforce the law so we small investors are left with some crumbs off the table. Thank You.