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Friday, March 25, 2011

Some People Gamble with Dice, Others on Wall Street

I keep getting wonderful email to share with my readers.  I know that speculation in commodities is a dangerous thing.  My Grandfather had a prosperous meat market in Seattle that he lost gambling on the commodities market.   So I'm publishing this email  from:

Americans for Financial Reform


Greetings,
Did you know that you could do something about rising food and gas prices?
Wall Street lobbyists are betting you won’t speak up.
The Dodd-Frank financial reform bill tasked the Commodity Futures Trading Commission (CFTC) with creating rules to curb excessive gambling in markets like food and gas, but Wall Street speculators are trying to get in the way.
In 2008, food and gas prices hit record highs and those prices are creeping up again. Excessive gambling played a role in those price spikes, and now the CFTC is at work on ‘position limits’ that will put a lid on the amount of gambling.
Now it’s your turn! The CFTC needs to hear from you.
Please take five minutes to urge the CFTC to apply strong rules to limit excessive gambling. The gamblers have already submitted their regulatory comments.
The CFTC has a new system for comments so please follow these instructions to leave a comment: 
  1.     Click here for “Proposed Rule 76 FR 4752 // 17 CFR Parts 1, 150 and 151 Position Limits for Derivatives” with a closing date of March 28, 2011.
  2.     Fill in your name and information - in the required field that asks for “Organization” please write your own name.

  3.    Please copy and paste the SAMPLE TEXT below:
(Introduce yourself: ie I am Ann Smith, I drive 30 minutes to and from work every day, and our family feels the effects of every increase in the price of gas)
I urge you to curb excessive gambling in commodities markets like food and oil. 

While many factors contribute to today’s highly volatile commodity prices, it is clear that excessive speculation is partially responsible, as shown in dozens of studies by respected institutions such as Princeton, MIT, Petersen Institute, University of London, Yale, the United Nations and the U.S. Senate.
 
Speculation thus imposes financial hardships on families around the country.  Sudden rises in gas and food prices force us to make difficult decisions and sacrifices. Especially right now, with so many families struggling, and unemployment barely beginning to decrease, we cannot allow speculators to unduly affect our food and gas prices.
 
Please put in place effective position limits rules, and do not allow them to be undermined by exemptions or exceptions, or allow Wall Street gamblers to escape them.
Thank you for your consideration.
OR feel free to edit it and add your perspective on the impacts of food and oil speculation: 
A. We cannot afford a repeat of the 2008 food and gas price bubbles, so the CFTC should put in place strong position limits to control excessive gambling.

B. The CFTC should not allow exemptions or exceptions that undermine the rule, and should not give any exemptions to banks, hedge funds or other financial players.
    4.    Click “Submit.”

Thanks for all of your hard work!
Americans for Financial Reform

Sent by Americans for Financial Reform
1629 K Street NW, 10th Floor, Washington, DC 20006 - (202) 466-3311

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