Comment Text:
Ken Ormson
257 Robin Hood Circle #202
Naples, FL 34104-9455
March 24, 2011
David Stawick
Secretary, Commodity Futures Trading Commission Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
Dear Mr. Stawick,
Please ensure that all the commisioners see this email.
I would like them to act in the best interests of ALL the people of the USA by ensuring that speculators are prevented from dictating the prices of basic commodities. These start with oil but include the knock-on effect into other staple items such as corn, wheat and sugar. In the end, all goods are affected by a rising oil price. This is especially galling if that rise is created by the money market rather than a genuine reflection of the cost of production.
Please set limits to ensure that this speculation is ended immediately.
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,
Ken Ormson
239-304-0765
