ABSTRACT
Historically large increases in crude oil prices were the center of an effort to impose price controls in the 1970s and raised concerns over manipulation that continues today. Manipulation of futures prices and price distortions caused by excessive speculation have serious repercussions on these markets, yet no Federal agency is responsible for preventing price manipulation or curbing excessive speculation. The increased commodity prices resulted in price increases at the retail level which have hurt the American family grievously, and particularly the lower income families and those on fixed incomes. The Commodity Futures Trading Commission (CFTC) had been in existence only about one year when it faced a massive manipulation of Maine potato futures prices. The CFTC replaced the Commodity Exchange Authority (CEA) as regulator for the commodity futures markets. In one instance, a CFTC administrative law judge (ALJ) dismissed a claim that a trader had participated and assisted in the long side of the potato manipulation.
