Sent: Sunday, July 11, 2010 8:43 AM

REMINDER:  THIS IS NOT INVESTMENT ADVICE.  IT IS A PERSONAL REFLECTION.  RELY ON NOTHING STATED HEREIN. In my search for enhanced returns, I have been studying business development companies (BDC).  BDC's are publicly traded, closed end funds that invest in private companies, much like private equity funds.  Some BDC's invest primarily in the equity, others in the debt of private companies.  The latter type appeals to me because of the cash flow available for distribution to shareholders.  Two that appeal to me are ARCC and AINV because they invest primarily in performing senior and subordinated debt of middle market private companies.  They yield in excess of 10% each.  I will buy this in my 401k because the dividends of BDC's which are Investment Company Act of 1940 regulated are not eligible for the 15% dividend rate. Since my last edition, I purchased MLG and GEC. Shockingly, I am very frustrated with the Obama administration.  The huge increase in marginal rates aside, I would like some clarity on what the "qualified" dividend rate will be.  Absent legislation, the pre-Bush tax rates will apply raising dividend tax rates to one's marginal rate---as high as 39.6%.  For several months and most recently last week on Kudlow, Secty. Geithner has indicated that the dividend rate will be 20% (which is acceptable to me) but when will they act?  It is July and after Labor Day the election cycle begins.  I suspect any such good news will be coupled with some anti business/anti wealth measure.  The impact of this situation is that I am hesitant to invest in thinly traded "qualified" preferred stock, the value of which will likely plummet if the 20% rate is not enacted.  Very upsetting