Subject: File No. S7-08-09
From: Paul K Claussen
Affiliation: Private investor

May 4, 2009

The Depository Trust Clearing Corporation is enabling naked short sellers by not forcing the delivery of shares. The Depository Trust Clearing Corporation is the elephant in the room that no one wants to talk about.
Naked short selling must be eliminated in its entirety.
Also Bernanke is right on when he stated that a short-sale transaction had to be entered at a price that is higher than the price of the previous trade.
Shorting should not be allowed in any circumstance when the stock is not borrowed prior to the short sale. You, the SEC, has allowed a large segment of the financial community to become a cabal of market manipulators at the expense of investors. Personally I believe the SEC with a wink and a nod has allowed the hedge funds to manipulate the market with little or no supervision. Now its time to stand up and do the right thing. Bring back the uptick rule for short sales and stop Naked Short Selling..