Ultra pertinent remark from the Club For Growth blogger:
[The New York Post video] is an informative video, but I want to quibble about two things. I view the term “-investing”- as the act of buying an asset with the hopes of it appreciating in value sometime in the future. Used correctly, you “-invest”- in a new home, a company on the stock exchange, or a baseball card collection.
However, you can’-t “-invest”- in politics as the New York Post reporter said you could. The reason why you can’-t is because contracts sold on prediction markets like InTrade.com are not assets– they are derivatives. Their value is based on the outcome of some event. Like futures contracts for frozen concentrated orange juice. […-]
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I have been blogging about that for years, here, on Midas Oracle.
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Previous blog posts by Chris F. Masse:
- If Midas Oracle were to meet, would we use Huddle, and why?
- WORLD’S SUCH A SMALL PLACE: Smarkets meet HubDub.
- 50% of our prediction market luminaries have a MacBook.
- STRAIGHT FROM OUR TRUISM DEPARTMENT: Money buys happiness.
- Ron Paul (R) and Barney Frank (D) ally together to attack “the practical hurdles of the federal law, known as the Unlawful Internet Gambling Enforcement Act, rather than its legitimacy”.
- Clicking on the “SPHERE: RELATED CONTENT” button, at the bottom of each Midas Oracle post, will bring you a list of external webspots.
- FRIGHTENING: Jed Christiansen’s prediction market blog was briefly overtaken by web spammers, who inserted invisible links to their commercial sites so as to game the Google PageRank system.