From: Joseph Barrett [JEBarrett_1@msn.com] Sent: Thursday, May 15, 2003 9:39 AM To: bob_bennett@bennett.senate.gov; harry_reid@reid.senate.gov; William Frist; senator@nickles.senate.gov Cc: Bob Graham; Bobby Scott; Chairman SEC; Eric Cantor; vice.president@whitehouse.gov; secretary@state.gov; president@whitehouse.gov; George Allen; Joe Liberman; John McCain; John Warner; senatorlott@lott.senate.gov; bill_frist@frist.senate.gov; senator_daschle@daschle.senate.gov; senator_byrd@byrd.senate.gov; phil_gramm@gramm.senate.gov; senator_thompson@thompson.senate.gov; Regulations SEC; Rules SEC; john_kerry@kerry.senate.gov; senator@sessions.senate.gov; senator@shelby.senate.gov; arlen_specter@specter.senate.gov; senator_voinovich@voinvich.senate.gov Subject: Fw: Securities Short Selling needs Regulation Hey Bob, After watching your defense of the Bush tax plan on C-Span today, I must say that I am a little disappointed. I am not a Democrat or a Republican; I am, just, an American struggling to make ends meet. I am, also, an investor that has suffered deep setbacks during the past two years. Notice that I said setbacks and not losses. Even though my investments have declined well over 50%, from over $600,000 to around $240,000, I have refused to sell my investments as I know the true value of the companies, that I have invested in and will be rewarded in time. Frankly, the Bush dividend plan would benefit me, but has me scratching my head. For companies to issue dividends, they should be making a profit. Many companies, that currently provide dividends, are, currently, operating at a loss and are having to fund the dividends through means other than profits. So, how does giving investors a tax break, help companies make money. Now, if the dividend tax break were going to the companies, then the companies would have an incentive to issue dividends. Do you see my confusion? In addition, how can our government truly afford the costs of such a tax cut? The Republicans talk about making the Democrats control their spending, yet it is the Republicans, that are actually spending the large amounts. We can not forget the Coalition of the Bought. Bush was willing to give Turkey 28 BILLION DOLLARS for their support of his WAR FOR PEACE. At the end of this email is an email that I sent to the SEC in July, 2002. The stock market is broken at this time and is no longer an institution for long term investment and savings, but rather has become a rapid, short-term trading environment, where a lot of money can be made or lost very quickly. To encourage the average working person to invest their hard earned, meager savings in this broken market, by offering insignificant dividend tax credits, insignificant with respect to the associated investment risk, is the height of irresponsibility of persons of your character. If the SEC fixes the problems with the stock market, the investors faith will be restored and the market will recover, without the associated financial burden of tax cuts for the wealthy!!! In addition, if the dividend tax break is not designed to benefit the wealthy, then why provide a flat cut and a percentage cut. I have 30, 000 shares of MOT stock, 20,000 shares in tax deferred accounts and 10,000 shares in taxable accounts. Let's do the math... First step, I get up to a $500.00 tax break just like everyone else. 10000 x 0.16 = 1600.00 - $500.00 = $1100.00 plus $1,100 x 0.10 = 110.00 HUM Now, what if I had a million shares of MOT!!! First year, 1000000 x 0.16 = $160,000.00 - $500.00= $159,500.00 plus $159,500 x 0.10 = $ 15,950 WOW And if Mr. Bush were to get his true request... My 10,000 shares 10,000 x 0.16 = $1,600.00 My 1,000,000 shares 1000000 x 0.16 = $160,000.00 Now, consider that any tax break, that I may get, will be used to get my family through these tough times, while people, who can afford 1,000,000 shares of MOT, do not really need a tax break. Until recently, Bill Bennett would have probably lost his tax break in Los Vegas! A tax cut in tough economic times should be about getting money to the people that need the money, and not about reducing the tax burden of those, who, admittedly, pay the most tax. Later, when the economy improves and the government can afford to, the government should look at easing the tax burden of the heavier taxed groups. No problem! Bob, Do the Republicans really think that Americans are truly stupid! Remember, we are watching, we are informed and we will remember!!! A flat rate for all levels of taxpayers would be much fairer, like the IRA deductions, including the decrement for increasing income levels. Now, Bob!!! Everyone likes tax cuts, if we can afford them. As Harry Reid asked, did you make the 1997 statement about the importance of eliminating the governments debt. If so, are you being very disingenuous, now? Bob, it is time to stand up for what you believe and not be intimidated by the Bush concept of "My Way or the Highway." Come on, Bob! Show the integrity, that I know you have... Remember!!! Many Americans have stopped listening to the neo-conservative talking heads and are now listening to and watching C-Span to get the real truth! Joe Barrett ----- Original Message ----- From: Joseph Barrett To: chairmanoffice@sec.gov ; rule-comments@sec.gov ; marketreg@sec.gov Cc: George Bush ; Dick Cheney ; senator@warner.senate.gov ; senator@allen.senate.gov ; Collin Powell Sent: Sunday, July 21, 2002 11:51 PM Subject: Securities Short Selling needs Regulation Hello Harvey, In these tough economic times, I am sure you are happy to hear from another unhappy investor! I, just, wanted to tell you that one problem area, that seems to be receiving no attention is that of the short sellers. I am positive that those greedy hedge fund managers and others are working together to collectively drive the stock market down and are making massive amounts of money while the longs are losing their shirts!!! Now, can I prove the above statement? No!!! Can you disprove the statement? No!!! The real reason that I am writing is to remind the SEC, that despite several requests by Congress for the SEC to develop a method of gathering the data necessary to determine the effects that securities short selling has on the market, no real progress has been made in this area. Providing a total short position for a security for one day of the month for each month does not provide the real time data necessary to determine the impact of short selling. "The 1967 Special Study recommended improvements in short sale data collection." "The 1976 Release noted the problems of insufficient data that the Special Study faced in 1963." The above two sentences are from an SEC document, Release No. 34-42037, on short selling. The primary problem identified by the 1967 Study and the 1976 Study was that there was not enough data to determine the real effects of short selling on the market. Unfortunately, the problem, still, exists today! I, personally, feel that the short sellers are a major cause of the current fall of the market, but the data to prove or disprove this theory is not available. So, in addition to confirming the integrity of the books of the large companies, a review of the impact of short selling on the current market should be made. In addition, the real time data collection system for securities transactions needs to be modified to collect the real time data on short sells. Joe Barrett Richmond, Va. 804-261-6973 A Concerned Investor