Comment Text:
Guy Stanoch
1502 Nittany Court
Valrico, FL 33596-7153
March 25, 2011
David Stawick
Secretary, Commodity Futures Trading Commission Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
BLUF: The cost of a barrel of oil at the well head versus the cost of a barrel on the market is TOO great. I don't mind people making a profit but when 10 people control the production of all the oil in the world it is ripe for greed and exploitation. Oil has a direct impact on national security and instead of politician's worrying about contributions from the energy sector they should worry about he affect these run away prices have on the average guy. The Libyan crisis is a perfect example. Libya accounts for less than 2% of world oil production and it all goes to Europe, but we saw prices jump using it as an excuse to gouge the average family. Shame on you if you are not looking after the interests of the American middle class when you vote. All the rest is techno speak for what you have to do.
Excessive speculation hurt the economy in 2008 and, once again, is harming the economy in 2011. According to data recently released by the Commission, speculators have raised their positions in energy markets by
64 percent compared to June 2008, bringing speculation to the highest level on record.
We need meaningful, effective speculative position limits to restore balance to commodities markets and ensure that they are connected to market fundamentals, so that they fulfill their price-discovery function properly and without distortions caused by excessive speculation. In particular, I:
• support the Commission's immediate adoption of spot-month speculative position limits; • urge the Commission to adopt effective back-month levels that will accomplish the legislative purpose of curbing excessive speculation; • urge the Commission to adopt single-month limits that are no higher than two-thirds of the all-months-combined levels; • urge the Commission immediately to adopt a position-accountability regime for the nonspot months in place of its proposed position-visibility rule; and • urge the Commission to adopt lower speculative position limits for passive, long-only traders.
Time is of the essence, and I urge you to act quickly. Our pocketbooks and the broader economy depend on it.
Sincerely,
Guy Stanoch
8134255757
