Tag Archives: political hedging
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 [...]
Economics blogger Zubin Jelveh got it right about the InTrade hedging thing.
“No Manipulation At InTrade“
Exactly.
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 [...]
A blogger at the New York Times misinforms the public about the alleged manipulations on the InTrade US political prediction markets.
The blogger titles the post, “Cheating the Spread”.
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, [...]
InTrade offers an explanation of strange trading.
Intrade has made a statement on the unusual trading that many have noted and alleged to be manipulative. The statement suggests that the price action is mostly attributable to a single firm, a hedger “using our markets in good faith and in the ordinary course of their business.”
The first company that comes to mind [...]
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.
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 [...]
Liberal hack (and Nobel Prize winner) Paul Krugman totally and completely misunderstands what InTrade CEO John Delaney said regarding the non-informational trades made on their US political prediction markets.
Paul Krugman writes that “one large institutional investor was manipulating the Intrade presidential odds”.
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 [...]
Jason Ruspini’s first guess about who is hedging on InTrade
His first guess: that firm.
UPDATE
There is no manipulation going on in the InTrade political prediction markets.
- InTrade CEO John Delaney has conducted an investigation on the alleged manipulation. The suspicious moves in prices were in fact caused by the buying and selling made by an “institutional” trader (a hedge fund, I presume) who has been managing “certain risks” (hedging).
- Jason Ruspini, who wrote before this report came out, does believe [...]
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