The blogger at Marginal Revolution misinforms the public by repeating the misinterpretation thrown around by liberal hack Paul Krugman about the alleged manipulation on the InTrade prediction markets.

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Alex Tabarrok writes that &#8220-someone was manipulating Intrade to boost John McCain&#8217-s stock price&#8221-.

No&#8230-!!!&#8230-

John Delaney said that that firm has been hedging on InTrade &#8212-a normal and beneficial activity on the other (larger and more liquid) financial markets.

InTrade is not liquid enough to weather (quickly enough) the impact made by the hedging activities, at this time, but will in the future, if growth continues.

Manipulation is bad.

Hedging is good.

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3 thoughts on “The blogger at Marginal Revolution misinforms the public by repeating the misinterpretation thrown around by liberal hack Paul Krugman about the alleged manipulation on the InTrade prediction markets.”

  1. Jason Ruspini said:

    It is a bit outrageous that he simply copied Krugman’s misrepresentation.

    Reply ↓
  2. Chris F. Masse said:

    It is sad that the #1 economics blog misinforms the public.

    Reply ↓
  3. The New York Times on InTrade's US political election prediction markets | Midas Oracle .ORG said:

    […] RELATED: See the comments on Midas Oracle here, here, here, and here. […]

    Reply ↓

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