March 12, 2007
I'd like to reply directly to Erna Burkle's comment.
Erna Burkle's comment first, my reply is under her comment.
From: Erna Burkle
Sent: March 9, 2007
Subject: File No. S7-25-06
I am an average middle class American, a public school teacher, who is trying to live the American way of life. That is, to live within my means by staying within my budget and saving a little each month. As the savings accumulate, I then invest the money in a REIT, Natural Gas, or Oil. The money from these investments and my long term care insurance should make me self-sufficient in my retirement. I do not want to be a burden to my children or my country.
I am trying to discern why the SEC would want to prevent me from accomplishing this. My investments stay in this country and add to job growth, which helps increase the GNP. If I am prevented by your new ruling from investing in a REIT, Natural Gas or some other pooled hedge funds; I will have only two choices. One is to make these types of investments outside the United States and increase jobs in a foreign country which will add to their GNP. The other choice would be to invest in a fund where the maintenance fees may be more than the return on your investment. You may show a growth in the fund, but after the fees are paid you are often in the red.
If the impetus for the new ruling is to prevent people from losing money, I suggest you go after the aggressive lenders. Ruthless mortgage lenders convince the elderly to accept unrealistic loans on their debt-free homes. These loans with their excessive fees often cause the elderly to lose their home. The worst offenders are the payday loan lenders. Many people can never get free from these loans. How much better it would be to allow people to invest in pooled hedge funds to create jobs to prevent the needs for such loans.
The money which is invested in energy helps to move America towards its goal of less reliance on foreign energy. If the SEC prevents American investors from investing in energy, the companies will be forced to forego drilling or become dependant on foreign investors. Money is readily available in Saudi Arabia and the other oil countries. Do we really want them controlling our oil as well as theirs?
American investments have long sustained this country and helped it grow into a great nation. I hope the SEC does not destroy our American way of life for myself or future generations.
Dear Average Middle Class American Public School Teacher Who Is Trying To Live The American Way of Life,
A few of your comments should be addressed.
As being among the most sophisticated, highly advanced and dangerous placing traders on the planet in the global currency market, I will take the liberty of doing so....
"I am trying to discern why the SEC would want to prevent me from accomplishing this."
First, you should sharpen your "discernment" skills to the level of where you can competently melt off a GBP/JPY long trade that's drawndown 30% against you, if need be. And, not lose a cent if you decide to.
Oh, you can't DO that?? Pardon me, then, Ma'am, you're not in ANY place to make discernments or judgements when it comes to investing in hedge funds, whether you should or not. Please leave that to the nice folks at the SEC to save you from yourself.
"If the impetus for the new ruling is to prevent people from losing money, I suggest you go after the aggressive lenders. Ruthless mortgage lenders convince the elderly to accept unrealistic loans on their debt-free homes. These loans with their excessive fees often cause the elderly to lose their home. The worst offenders are the payday loan lenders. Many people can never get free from these loans."
Elderly retired people living on a pension should NOT be invested in hedge funds - end of story.
"Ruthless" real estate salesmen you refer to are like sheep compared to being ravenous wolves traders must be to survive in the trading markets, Ma'am. Again, no valid argument there from you or other elderly citizens.
"How much better it would be to allow people to invest in pooled hedge funds to create jobs to prevent the needs for such loans."
No better at all, Ma'am, if fact MUCH worse. "Creating jobs" is NOT what hedge funds do for a living, lady. This kind of delusional thinking is exactly why the SEC is proposing to raise entry level rates.
There should not be more than 1% or 2% of the populous in general who should have access to these funds. Based on a PNW dollar amount or based on whatever.
Truth is, the markets are slaughter zones that make Iraq look like a picnic any day of the week.
Middle class retirees are the LAST lambs who should get involved in hedge funds.
SEC counsel, I strongly reccommend you raise the entry limits, to keep supposedly educated and sophisticated people from getting themselves destroyed in the hedge fund industry.