Comment Text:
10-002
COMMENT
CL-04787
From:
Sent:
To:
Subject:
[email protected]
Tuesday, April 13, 2010 10:39 AM
secretary
Proposed Speculative Position Limits on Energy
Michael Stein
263 Parker Rd
Chapel Hill, NC 27517-9142
April 13, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
I support the CFTC's Proposed Federal Speculative Position Limits to
establish speculative position limits on major energy commodities. This
rule will improve stability to the energy 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 hurt the economy. It will
continue to hurt every American who pays excessive prices at the pump, for
groceries, home heating oil and everything related to transportation.
I am usually in support of market trading; i.e. allowing the marketplace
itself set the price via supply and demand. HOWEVER, speculative trading
is NOT market trading! It creates the illusion of lack of supply or
excessive demand, thus preventing the market from responding to the actual
forces in play. In this particular market, establishing position limits
will support actual conditions influencing the market.
Our tax dollars bailed out large Wall Street firms when they were on the
brink of bankruptcy. Through excessive speculation, these same
institutions 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 created extreme
volatility in energy markets and unwarranted price spikes in recent years.
Given that supplies are at record highs and U.S. demand remains weak,
these fundamentals do not explain the recent price hikes and price swings.
Unless the CFTC adopts the proposed rule, markets will continue to
fluctuate wildly, at the expense of the American consumer.
Position limits existed in energy markets until 2001 and currently apply
to agricultural commodities. CFTC should use its existing experience &
regulate position limits of speculators to prevent excessive concentration10-002
COMMENT
CL-04787
in the energy markets, ~vhile ensuring that exemptions to these limits are
afforded to real physical players such as fuel cooperatives, public
utilities, truckers and airlines.
I need energy stability. As I, and other Americans, seek to find our ~vay
out of the recession, consistent, reliable, & some~vhat predictable energy
prices allo~v us to effectively budget still limited resources so that they
can be channeled into many areas of the economy, and not just energy. I
encourage the CFTC to adopt the Proposed Federal Speculative Position
Limits before volatile fuel prices further harm the country's already
~veakened economy.
Sincerely,
Michael Stein
9199323632
