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.

Posted on October 18, 2008 by Chris F. Masse

Alex Tabarrok writes that “someone was manipulating Intrade to boost John McCain’s stock price”.

No…!!!…

John Delaney said that that firm has been hedging on InTrade —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.

About Chris F. Masse

Founder and President of Midas Oracle
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3 Responses to 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 says:
    October 19, 2008 at 5:56 PM

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

  2. Chris F. Masse says:
    October 19, 2008 at 8:38 PM

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

  3. Pingback: The New York Times on InTrade’s US political election prediction markets | Midas Oracle .ORG

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