Subject: File No. S7-34-11
From: Mary Toman

September 6, 2011

I suggest the SEC continue to exclude REITS and make no change to rule 3a-7. The housing market is an integral part of the US economy, and requires the support of private investors. The elderly can no longer depend on the suboptimal interest earned on "safe" Treasury bonds or FDIC-insured bank CDs to feed themselves, so need the yield of these REITS to survive. These two factors should be considered before mucking around with rules once again, imho. The SEC missed the boat on regulating the securities that led to the housing disaster, so should just step away and let the market resolve itself. The road to hell is paved with good intentions.