Subject: File No. S7-34-11
From: Joseph Russo
Affiliation: Retired Investor

September 3, 2011

As a retired investor, I rely heavily on dividend paying stocks. I cannot comment on the legality of how the REITs work, but I do know that 90% of their profits are paid out to folks like me. If you see fit to change the rules and virtually wipe out the industry, please calculate the amount of money you will take out of the consumer's hands. In these tough times, I believe the Government should not want to curtail any source of income as I and many others, as you can see by the many comments in this file, will be stripped of an income we have come to live on. Also, please keep in mind that it's the Fed that has created the atmosphere of keeping rates near zero to allow Government agencies to loan at low rates to please the populace. In a simplistic way, I think REITs do no more than borrow at a low rate and lend at a higher rate and we all profit from the spread. If you and the Government need to raise funds, consider eliminating the cap on Social Security.
I urge you not to change the status of REITs. PLEASE leave well enough alone.