Comment Text:
510 372 8785 (Fax)
April 13, 2010
COMMENT
10-002
COMMENT
CL-02705
David Stawick
Secretary, Commodity Futures Trading Commission
Ttn'ee Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Re: Proposed Speculative Position Limits on Energy
Dear Mr. Stawick:
I am writing in support of the CFTC's Proposed Federal Speculative Position Limits that will reestablish
speculative position limits on major energy commodities. This rule will provide stability to the marketplace
and help prevent future price bubbles. The CFTC must quickly approve a strong rule to protect America's
struggling economy. Wall Street's speculative trading in oil not only hurts the economy, but hurts every
American who pays excessive prices at the pump, for groceries, home heating oil and everything related to
transportation.
Our tax dollars were used to bail out large Wall Street firms when they were on the brink of bankruptcy. It
is these same institutions that pushed the price of gasoline well past $4 per gallon in 2008 by gambling on
oil and continue to profit at every American's expense.
Rampant oil speculation by large Wall Street trading firms has resulted in extreme volatility in energy
markets and unwarranted price spikes in recent years. Given that supplies are at record highs and demand
remains weak, fundamentals cannot explain recent price hikes and destructive price swings. Unless the
CFTC adopts the proposed rule, markets will continue to fluctuate wildly.
Position limits existed in energy markets until 2001 and currently apply to agricultural commodities. CFTC
should use its existing experience to regulate position limits of speculators and prevent excessive
concentration in the energy markets, while ensuring that exemptions to these limits afforded to real
physical players such as fuel cooperatives, public utilities, truckers and airlines are not exploited by big
banks and billionaire investors.
Energy consumers desperately need stability in the marketplace. I encourage the CFTC to adopt the
Proposed Federal Speculative Position Limits before volatile fuel prices further harm the country's already
weakened economy.
Sincerely,
Michael
