Prohibitions On Market Manipulation and False Information in Subtitle B of the Energy Independence and Security Act of 2007 #535819-00109

Submission Number:
535819-00109
Commenter:
Greg Turner
Organization:
Citizen
State:
SC
Initiative Name:
Prohibitions On Market Manipulation and False Information in Subtitle B of the Energy Independence and Security Act of 2007

It is IMPERATIVE for the FTC to look at the Nature, Context and TIMING of the "So-called Commodity Analyst Reports" and recent (hyped) comments made by several Key, POWERFUL Wall Street Firms. - It Is MY OPINION, that these firms KNOW they have significant influence on market behavior. I believe they create their 'reports' and offer them to the public media outlets such as CNBC and the WSJ to 'hype' - with the KNOWLEDGE that their 'speculative opinions' will be consumed and will INFLUENCE Market behavior - it is why they are written in the first place. (Look at the remarks, are they ture facts or are they being touted as 'facts'...??) Since these firms MANGE the Largest Commodity Index Funds and hedge funds in the commodity space and in the OIL market, they have an ENORMOUS VESTED INTEREST in seeing that more money flows into THEIR FUNDS, and that trades within these funds are made. The more money that comes into their funds, the more are their fees, etc. Look at recent Senate testimonies in several hearings - namely Micheal Master's testimony in Leiberman's May 20th hearing and the testimony of Micheal Greenberg, former CFTC head, in the hearing of June 4th, it is evident that these Funds are CONTROLLING the OIL MARKET...it is also evident from other testimony in the Lieberman hearing and other testimony in hearings held in May given by the top OIL EXECS, that oil is about $45 (average) out of the ground worldwide, and the IMF said that recent dollar devaluation has added $20-25 max to the price of oil. Therefore, the true fundamental price is @$75 +/-, the price at which the Saudis have been telling Bush all year that it should be... Therefore, given the huge amount of money in the oil market by the CIFs (@ one third of all the money) and that normal oil speculators should comprise 10-15% of trades, yet spec trades are now @ 90%, there is something really ASKWEW now! The TIMING and Release of the "WS ANALYST'S" report have followed several days of PRICE DROPS in oil - they have been PROMOTED by CNBC and the WSJ, and HAVE HAD AN IMMEDIATE IMPACT, completely Reversing the downdrafts in prices by non fund managing traders who were selling short due to true oil market fundamental FACTS - - These reports CAUSED new price spikes... the coincidence is TOO UNCANNY - NOTE - the reports are centered around "SPECULALTIVE" maybe's and DO NOT always Correspond to ACTUAL 'Facts on the Ground' that exist at Present - - YET, they have an immediate impact on current prices...CAUSING MAJOR ECONOMIC PAIN and DAMAGE! IF the reports were made by "TRULY INDEPENDENT ANALYTS" AND NON-BIASED GOV'TAL AGENICES based on real research, then they might make sense - BUT, they are made by the firms that manage the Largest Amounts of oil trading money in the market today. In my opinion, they are using their COMPLETELY BIASED, BUT WELL TOUTED MARKET INFLUNECE of their firm's brand names to Re-Direct more monies in the funds/markets - thereby Creating a TRUE SELF-FULFILLING PROPHECY Market Psychology - I believe THEY KNOW THEY CHANGE Price direction with these reports, is this not at the least, indirectly - given their size and position and looking at the amount of oil market they now controll -indeed market manipulation? Look at the OIL PRICES, several days in advance of the release of these 'spec reports' and note how the market responded - note that the week of June 2nd GS and JP Morgan had been singled out by Rep. Stupak as potential manipulators, so it seems like the baton was maybe passed last week to Morgan Stanley to step up on June 6th and issue 'another one of these highly speculative reports' - following about 5 days of price declines(?)...(wonder ifthey were asked todo this the other firms?) - note the GS report in early May and JP Morgan's comments in the 4th week of May (?) - There is TOO much smoke here not to be some fire!! Thank you, G