
 |
|
May 22, 2013
John Thorne:
They launched the 'Arab Spring' but now yearn for the good old days of a strongman
May 20, 2013
Richard A. Serrano: Is Meir Kahane's assassin now a changed man?
Melissa Healy: Genetic copies of living people from embryos no longer science fiction
Jewz in the Newz by Nate Bloom : Jews Inducted into Rock Hall of Fame; Anton Yelchin co-stars in New "Trek" film; Kutcher (but not Kunis) visits Israel; Jewish TV Star Praises Jewish Rap Star
The Kosher Gourmet by Cathy Pollak: WARNING: This WALNUT CAKE WITH PRALINE FROSTING, perfect for afternoon coffee, is addicting
May 13, 2013
Rabbi Nathan Lopes Cardozo: Why the giving of the document that would permanently change the world could only be done in desolation
David G. Savage: Church-state, literally? Supreme Court weighing public school graduation in a church
May 10, 2013
Rabbi Berel Wein: Be all that you should be
May 8, 2013
Peter Ford: Why China is welcoming both Israel's Netanyahu and Palestinians' Abbas
Warren Richey: Obama administration quietly backs out of appeal over new contraceptive mandate
Fred Weir: At Kerry-Putin meeting, US-Russia relations thaw --- a tad
The Kosher Gourmet by Leela Cyd Ross : Almost too pretty to eat, this colorful salad with Sicilian inspiration will tickle the taste buds and delight your visual sensibility
May 6, 2013
May 3, 2013
Kids, kittens the Same? With employee perks at struggling Internet pioneer Yahoo! it's hard to tell
Sandy Kleffman: Artificial kidney offers hope to patients tethered to a dialysis machine
April 29, 2013
Roy Gutman: Poland's new Jewish museum celebrates life, doesn't revisit Holocaust
Mark Clayton: Terrorism in America: Is US missing a chance to learn from failed plots?
Kim Murphy: Boston Bomber's 'Svengali' Revealed
Pete Spotts: Tiny satellites + cellphones = cheaper 'eyes in the sky' for NASA
April 26, 2013
Clifford D. May: Defense in the Age of Jihadist Terrorism
Sharon Palmer, R.D.: How to feel your best -- with plenty of energy, a healthy weight and optimal mental and physical function -- without driving yourself batty
April 24, 2013
|
| |
Jewish World Review
May 14, 2008
/ 9 Iyar 5768
Government stifles the wisdom of crowds
By
John Stossel
| 
|
|
|
|
http://www.JewishWorldReview.com |
Who will be our next president? If you want an accurate guess, don't ask the pundits. Go where people put their money where their mouths are.
Intrade.com, for example.
It's a prediction market, basically a futures market like those where people bet on the future price of oil, gold and pork bellies. But at Intrade, people bet mostly on politics.
The prices on Intrade have been highly accurate predictors of the future. On TV, political "experts" make pronouncements on what they think will happen, but crowds of bettors on sites like Intrade are right more often.
In 2004, TV experts like James Carville said John Kerry would win the presidency. In 2006, they said the Republicans would keep control of Congress.
But the crowds on Intrade bet against Kerry, and in 2006, "the bettors at Intrade collectively called every single race in the Senate right," James Surowiecki, author of "The Wisdom of Crowds", told me for last week's "20/20".
Wisdom of Crowds? When I think of crowds, I think of mobs. But, Surowiecki says, "[C]rowds of people can be incredibly intelligent. ... [I]f the crowd is big enough and diverse enough, you have access to so much more knowledge."
The first computerized political market was created at the University of Iowa. "That market outperformed polls three-quarters of the time, and its election-eve forecasts were better than any pundit's and better than any poll," says Surowiecki.
Intrade takes bets on more than politics. You can bet on global warming will this year be one of the five hottest on record? or on whether Eliot Spitzer will be indicted or on whether there will be a massive earthquake before the end of this year.
But most bets concern presidential politics. People have made lots of money predicting unlikely events, such as John McCain's comeback.
So isn't this a form of gambling, and isn't gambling illegal in America? Intrade is located in Ireland, and CEO John Delaney told me he's afraid to come to America because, "I don't look good in an orange jumpsuit."
He has reason to worry. Congressional Republicans added a provision cracking down on online gambling to a port-security bill in 2006.
Most banks stopped dealing with sites like Intrade after that, but some continued, including one called Neteller. Its Canadian cofounders were arrested on a trip to the United States in 2007. Now they face up to five years in prison. That seems like an odd way to treat people who make financial activities between consenting adults possible while providing useful information about the future.
Horse racing, fantasy sports and online lotteries were given exemptions in the 2006 bill. It's OK to bet if you have influence in Washington. Ironically, the U.S. Navy and Federal Reserve use Intrade's data.
That Iowa prediction market begged for special permission from the government and got a waiver that limits bets to $500. "That makes them less accurate," says Surowiecki. "Real money is what makes it work."
America's anti-gambling laws are thoroughly hypocritical. States run lotteries one of the worst forms of gambling since no skill is involved and the odds are so bad while prediction markets, a powerful forecasting tool, are stifled.
The Department of Defense once considered setting up a market to predict where the next terrorist attack might occur. The idea died when some politicians shouted it down. Sen. Byron Dorgan, D-N.D., sneered at "this betting parlor on the Internet." Sen. Ron Wyden, D-Ore., said a terrorism futures market "is ridiculous ... grotesque."
Surowiecki says, "These are potentially tremendously useful tools for improving our national security. It's much more egregious not to use them than to use them."
What does Intrade predict now? As I write this, Hillary Clinton's shot at winning the Democratic nomination has fallen to 8 cents, indicating an 8 percent chance of winning, while Obama is selling for 90 cents. And Obama is favored to win the presidency. You can buy McCain for about 37 cents, but Obama is valued at 55 cents.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
JUST OUT FROM STOSSEL
Myths, Lies and Downright Stupidity: Get Out the Shovel --- Why Everything You Know Is Wrong
Stossel mines his 20/20 segments for often engaging challenges to conventional wisdom, presenting a series of "myths" and then deploying an investigative journalism shovel to unearth "truth." This results in snappy debunkings of alarmism, witch-hunts, satanic ritual abuse prosecutions and marketing hokum like the irradiated-foods panic, homeopathic medicine and the notion that bottled water beats tap. Stossel's libertarian convictions make him particularly fond of exposes of government waste and regulatory fiascoes. Sales help fund JWR.
|
JWR contributor John Stossel is co-anchor of ABC News' "20/20." To comment, please click here.
Archives
© 2008, by JFS Productions, Inc.
Distributed by Creators Syndicate, Inc.
|
|

Arnold Ahlert
Mitch Albom
Jay Ambrose
Michael Barone
Barrywood
Lori Borgman
Stratfor Briefing
Mona Charen
Linda Chavez
Richard Z. Chesnoff
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
Christine Flowers
Frank J. Gaffney
Bernie Goldberg
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Argus Hamilton
Victor Davis Hanson
Betsy Hart
Ron Hart
Nat Hentoff
A. Barton Hinkle
Jeff Jacoby
Paul Johnson
Jack Kelly
Ch. Krauthammer
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Ann McFeatters
Dale McFeatters
Dana Milbank
Jeanne Moos
Dick Morris
Jim Mullen
Deroy Murdock
Judge A. Napolitano
Bill O'Reilly
Clarence Page
Kathleen Parker
Star Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Sharon Randall
Robert Robb
Cokie & Steve Roberts
Heather Robinson
Debra J. Saunders
Martin Schram
Greg Schwem
Culture Shlock
David Shribman
Roger Simon
Lenore Skenazy
Michael Smerconish
Thomas Sowell
Ben Stein
Mark Steyn
John Stossel
Cal Thomas
Dan Thomasson
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
ZeitGeist
Mort Zuckerman

Robert Arial
Chuck Asay
Baloo
Lisa Benson
Chip Bok
Dry Bones
John Branch
John Cole
J. D. Crowe
Matt Davies
John Deering
Brian Duffy
Everything's Relative
Mallard Fillmore
Glenn Foden
Jake Fuller
Bob Gorrel
Walt Handelsman
Joe Heller
David Hitch
Jerry Holbert
David Horsey
Lee Judge
Steve Kelley
Jeff Koterba
Dick Locher
Chan Lowe
Jimmy Margulies
Jack Ohman
Michael Ramirez
Rob Rogers
Drew Sheneman
Kevin Siers
Jeff Stahler
Scott Stantis
Danna Summers
Gary Varvel
Kirk Walters
Dan Wasserman

Tech Q&A
Mr. Know-It-All
Ask Doctor K
Richard Lederer
Frugal Living
On Nutrition
Bookmark These
Bruce Williams
|