Freakonomics is the latest in a long series of (usually, serious) bloggers who have misinformed the public by stating that the institutional investor is manipulating the US political election prediction markets.

The anonymous blogger (probably the editor, Annika Mengisen) titles the post, “A New Kind of Campaign Advertising?”, and asks:

Will market manipulation for political candidates become the norm as ever-wealthier campaigns try to control the news cycle?

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.