Bart Chilton

Podcast

CFTC

Commissioner Bart Chilton: Price Discovery In The Commodities Markets

How "free and fair" is it?
Saturday, March 7, 2015, 4:54 PM

In theory, regulation is supposed to set and enforce the rules of the game that market participants play by, in order to ensure that price discovery remains efficient, effective -- and most important -- fair.

In practice, there's plenty of debate to be had on how successful our regulators are in effecting their mission. And one investment class in particular, commodities, frequently comes under criticism for questionable price action.

So, this week we talk with Bart Chilton, former Commissioner of the Commodity Futures Trading Commission (CFTC), about price discovery within the commodity markets, and whether investors can have confidence in the "fairness" of the current system. » Read more

guest

Bart Chilton

Bart Chilton

Bart Chilton (born May 1, 1960) was a commissioner on the United States Commodity Futures Trading Commission (CFTC) from 2007 - 2014. In April 2014, he joined DLA Piper as a Senior Policy Advisor. He is the author of the Agency's best-selling investment fraud book, Ponzimonium: How Scam Artists are Ripping off America. Chilton has been a vocal supporter of position limits in commodities markets. He has exposed manipulation practices in commodities markets and gone on record as wanting to prosecute violations of law, which he believes have taken place in the silver market.

Blog

Berents/Shuttstock

How Markets Are Rigged Against You

But the fundamentals will ultimately prevail
Wednesday, December 11, 2013, 3:17 PM

Well, the idea of markets being rigged is pretty much coming out of the woodwork now, and the fact that it is indicative of too much power being concentrated into the hands of too few people, especially moral people, is gaining acceptance.

You know, historically we've seen this over and over again, and many times it has not ended all that well for the 'money changers.'

Here's the 'meme' being presented in Canada by CBC. » Read more

Blog

2012 Year in Review

Free markets, rule of law, and other urban legends
Friday, December 21, 2012, 3:34 PM

Background

I was just trying to figure it all out.

~ Michael Burry, hedge fund manager

Every December, I write a Year in Review that has now found a home at Chris Martenson’s website PeakProsperity.com.1,2,3 What started as a simple summary intended for a couple dozen people morphed over time into a much more detailed account that accrued over 25,000 clicks last year.4 'Year in Review' is a bit of a misnomer in that it is both a collage of what happened, plus a smattering of issues that are on my radar right now. As to why people care what an organic chemist thinks about investing, economics, monetary policy, and societal moods I can only offer a few thoughts.

For starters, in 33 years of investing with a decidedly undiversified portfolio, I had only one year in which my total wealth decreased in nominal dollars. For the 13 years beginning 01/01/00—the 13 toughest investing years of the new millennium!—I have been able to compound my personal wealth at an 11% annualized rate. This holds up well against the pros. I am also fairly good at distilling complexity down to simplicity and seem to be a congenital contrarian. I also have been a devout follower of Austrian business cycle theory—i.e., free market economics—since the late 1990s.4

Each review begins with a highly personalized analysis of my efforts to get through another year of investing followed by a more holistic overview of what is now a 33-year quest for a ramen-soup-free retirement. These details may be instructive for those interested in my approach to investing. The bulk of the review, however, describes thoughts and observations—the year’s events told as a narrative. The links are copious, albeit not comprehensive. Some are flagged with enthusiasm. Everything can be found here.5 » Read more