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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (94483)	5/25/2011 12:40:22 PM
From: tejek	Respond to of 149317

Crude Oil Manipulation Suit May Fuel Debate on Speculation Rules By Silla Brush and Joshua Gallu - May 24, 2011 6:17 PM PT A U.S. lawsuit against two traders and three firms that allegedly manipulated prices for crude oil derivatives in 2008 may bolster calls for new speculative trading limits required by the Dodd-Frank Act. The Commodity Futures Trading Commission claimed in its suit that the alleged scheme generated $50 million in unlawful profits and pushed crude oil prices higher nationwide. The civil complaint, filed yesterday in U.S. District Court in New York, claims that James T. Dyer of Brisbane, Australia, and Nicholas J. Wildgoose of Rancho Santa Fe, Calif., amassed physical and derivative positions in West Texas Intermediate crude oil to artificially push prices higher. The complaint also named Parnon Energy Inc. of Rancho Santa Fe, Arcadia Petroleum Ltd. of London and Arcadia Energy SA of Morges, Switzerland as defendants. The CFTC is facing pressure from Democratic members of Congress to impose trading curbs on oil because of the increase in crude prices. The case “may highlight the need for speculative limits in some people’s minds because they perceive it as a simple solution,” said David Hackett, president of Stillwater Associates, an Irvine, Calif.-based energy consultancy. In its lawsuit, the CFTC said the traders, who had no commercial need for crude oil, made the “economically irrational” move of holding their physical position to lull the market into believing that the oil had been stored or put to commercial use, with “the secret intent to surprise the market later” by dumping their position and driving prices back down. Sell-Off The traders then used derivatives to sell short, or bet against the artificially high price before surprising the market with an unexpected sell-off, driving the price down and generating profits on their short position, according to the complaint. Dyer and Wildgoose conducted the activities in January and March of 2008, and aborted another attempt to manipulate prices a month later after learning they were under investigation, the CFTC said. A call to a Limassol, Cyprus, phone number listed to Farahead Holdings Limited, the parent company for the firms, was not connected. Phone numbers for Dyer and Wildgoose weren’t immediately available, and no defense attorneys were listed in court documents. The suit is the first anti-manipulation case filed or settled by the CFTC since April 29, 2010, according to the agency. ‘Gouged at the Pump’ “This is exactly what we expect the CFTC to be doing,” said Senator Maria Cantwell, a Washington Democrat. “I expect the CFTC to be aggressive in policing these markets and standing up for consumers who are getting gouged at the pump.” Gregory Mocek, former head of the CFTC enforcement division, said the agency has “aggressively pursued what they perceive to be manipulative conduct in these markets since 2002,” referring to the time since the Enron Corp. scandal. “And I don’t think that’s going to stop anytime soon,” he said. Dodd-Frank’s requirement for so-called position limits to curb speculative trading has divided the CFTC, which missed its January deadline to complete the rules. Meanwhile, 17 Democratic senators urged the CFTC on May 11 to quickly impose the limits, starting with crude oil. “Though the CFTC is not a price-setting agency, rising prices for basic commodities highlight the importance of having effective market oversight,” Gary Gensler, CFTC chairman, wrote in response to the senators’ letter. To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net. bloomberg.com

To: koan who wrote (94483)	5/25/2011 1:14:26 PM
From: Road Walker	Read Replies (1) \| Respond to of 149317

Yes, and it is all of the red that is destroying this country. So you blame the voters? With a little introspection you might instead blame the liberals and/or Democrats. If, as you claim, their message is more truthful and better for the country, then why so much red in the South and Western states? Should be easy to convince them to vote blue. Your side is obviously losing the battle in parts of the country. Seems like it would be more productive to figure out a way to win those voters, rather than insult them.