Comment Text:
Isabelle Freda
305 W. 111th Street
New York, NY 10026-4009
March 24, 2011
David Stawick
Secretary, Commodity Futures Trading Commission Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
I am concerned about our nation's economic health, and speculation is one part of it that we can fix. I received an email from S.O.S. (stop oil speculation now), an organization that is devoted to reducing the chaos and economic injustice caused by unregulated markets in commodities that are essential to the survival of our country, its businesses (and military), and its people. I support their statement, provided below.
Thank you for your time in reviewing comments of concerned citizens and organizations in working to get our country moving in the right direction.
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,
Isabelle Freda
212-678-2284
