Comment Text:
10-002
COMMENT
CL-02329
From:
Sent:
To:
Subject:
[email protected]
Wednesday, April 14, 2010
8:19 AM
secretary
Proposed Speculative Position Limits on Energy
Joseph Ahlman
289 East 400 North #1
Provo, UT 84606-2946
April 14, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
I am contacting you in support of the CFTC's Proposed Federal Speculative
Position Limits to set speculation limits on energy commodities.
Speculation has no "value added" purpose. It is just another parasitic
way to syphon off concrete value by creating another middle man. It is the
very definition of either a bubble in the making, or a bubble popping.
Abolishing this practice could provide stability and help prevent future
energy price bubbles. The CFTC should promptly approve a strong rule to
protect America's struggling economy. Wall Street's speculative trading
in oil hurts the economy, which hurts every American. The ripple effect
of oil prices reaches into everything we consume--not just prices at the
pump, groceries, 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.10-002
COMMENT
CL-02329
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,
Joseph Ahlman
(801) 360-2034
