Comment Text:
Michael Dunn says that he needs more evidence. How can you need more evidence when it is so clear to everyone that, when there is excessive speculation, prices are manipulated?
When Amaranth Advisors had excessive speculation in the Natural Gas (NG) market, the prices were manipulated. March-April spreads were several dollars. Now that Amaranth is gone the spreads are only about 50 cents.
When Amaranth blew up in Aug-Sep 2006, NG prices dropped by 25%. When they were done blowing up, prices rose by 25%.
That is clear evidence of excessive speculation affecting prices. Nobody can dispute it.
Excessive speculation has driven up prices and manipulated them. Failure to protect commodity markets is not doing your job.
