How VC blogger Paul Kedrosky pumped up HedgeStreet to his gullible readers in 2006, and later failed to update them with the hard fact of its (de facto) bankruptcy. Why telling the truth to readers when its easier to tell them fairy tales?

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Paul Kedrosky was all excited, in April 2006, to tell his gullible readers that HedgeStreet received another round of funding &#8212-adding all up to $24.9 million.

And just 18 months after Paul Kedrosky&#8217-s pronouncement, HedgeStreet (v1) ate the bullet and bellied up.

And, of course, Paul Kedrosky has never mentioned to his readers the hard fact that those $24.9 million went up in flames &#8212-creating nothing else than hot air.

Why bothering with reporting the truth? Let&#8217-s tell blog readers some fairy tales, instead. They swallow.

Ask anybody who suffered the recent bloodletting at HedgeStreet: CFTC regulation can impose crushing burdens. It has nearly driven that innovative business into the ground.

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That was Tom W. Bell, of course. And 5 months after Tom W. Bell&#8217-s pronouncement, HedgeStreet v1 ate the bullet and bellied up.

Doctor Pennock, isn&#8217-t &#8220-pragmatism&#8221- to take into perspective the hard facts povided by:

  1. the bankruptcy of the CFTC-regulated HedgeStreet v1,
  2. and the insolent health of the UK Gambling Commission-regulated BetFair?

Shouldn&#8217-t the &#8220-pragmatists&#8221- draw lessons from all that?

Or will the the &#8220-pragmatists&#8221- ignore the hard facts?

Of, yeah, please, let&#8217-s display &#8220-pragmatism&#8221-.

Back in your court, doc.

Here&#8217-s Tom W. Bell&#8217-s old take that prediction markets fall outside of the CFTC&#8217-s jurisdiction.