Comment Text:
10-002
COMMENT
CL-08151
From:
Sent:
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Subject:
[email protected]
Friday, April 23, 2010 12:21 PM
secretary
Proposed Speculative Position
Limits on Energy
Nicholas Schwendeman
14149 Furlong Trail
Hastings, MN 55033-8559
April 23, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
Oil is too vital a resource for our economy to allow speculation to so
dramatically fluctuate its price. Speculation in other commodities is
less harmful, as the effect is much smaller. But speculation on oil
affects us all very dramatically. Like our dependence on oil or not, the
reality today is every small change in crude oil prices touches each and
every American. Gas prices are just the first thing seen. It affects the
price of food, the price of travel, the price to heat our homes, the price
of just about everything we buy or consume.
I support the free market in general, and I don't think speculation itself
is a bad thing. But in the case of oil, the cost is just too high, and
affects too many people.
I am writing in support of the CFTC's Proposed Federal Speculative
Position Limits that will reestablish speculative position limits on maj or
energy commodities. This rule will provide stability to the 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 not only hurts the economy, but hurts every
American who pays excessive prices at the pump, for groceries, home
heating oil 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 to10-002
COMMENT
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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.
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,
Nicholas Schwendeman
651-438-1106
