September 2, 2011
To Whom It May Concern:
I am contacting the SEC to state my disapproval of the proposed change to a REIT's operating investment class that was proposed on August 31, 2011. Given the current state of the U.S. economy, I do not feel this is the time to impose further restrictions that would inhibit one's ability to raise cash for credit worthy Americans - individuals or private sector employers. Over the past 20 years, REITs have been our best source of raising credit in order to provide essential services that enhance American lifestyle. At the same time, the investors are earning a reliable, steady return through dividends that now supplement our loss wages in the private sector during this tough economic environment.
In the above statement, I am not denying the need for regulation of American credit markets. However, I do not see the benefits of imposing further restrictions on the private sector by negatively impacting many investors' cash flow that is attained through REIT equity ownership.
Changing a REIT's investment class will not solve our current economic woes. If the SEC wishes to impose further restrictions to any particular area it should review CDO market derivatives at our larger financial institutions. Several institutions, i.e. Citigroup, continue to buy junk bonds in the open market in order to break them into smaller shares to bundle with even smaller shares of AAA rated bonds. This is the financial practice that needs a major overhaul to avoid repeating the 2008 economic crisis.