Andrew: In reference to the 'political future market' article
Research has shown that, in times of increased government spending, investors are more likely to profit from trading tangable assets (commodities).(www.dailyfutures.com). While the general public has become increasingly aware of US spending, some investors may sight, what is in essence, a reallocational characteristic of recent US government spending (c-span) as incentive for investing in a ripe 'futures' market. Most recently, google 'exploded' on the scene making an incredible splash in the world of business news, which may have also cornered the market for investors who are willing to risk the instability that comes with a lack of tangable assets.
Another incentive for this type of trading would be the assurance of a short-term timetable. Of course, certain subsections of the investing world are still a bit squeemish from the dot com era. These three incentives could make for profit in the "politcal future" market. The general irony of future investment is that maximized profit results from an influx of money from increased trading that balances with a limited number of investors who actually profit. The down sides are obvious. I've researched hard and soft money donations and campaign finance reform prior to this article. Certainly this could make a splash in certain political arenas. In theory, it ensures public participation in the democratic political system. Most importantly, though, with cries already being herad from the epicenter of public politics, the presidential election, about the "Florida" recount and campaign financing, this type of investing could prove to be very detrimental. Nobody wants to see a Vegas/Venezuala/Enron-type conspiracy theory mixed with point "shaving" scandals. With all the different types of "betting", it's concievable that certain candidates for public office could go to jail for "point shaving" scandals as a means of raising money for party donations.
It has been said by many that baseball holds an important place as a Patriotic, American pastime. Combine Nixon, Clinton, Kennedy and Bush and somebody's gonna uncover something that resembles foul play. Perhaps, presidential elections will soon match the 1919 White sox World series? Just some thoughts.
Works cited and research included:www.biz.uiowa.edu/iem/ and www.dailyfutures.com. c-span television. All searches thanx to www.google.com.
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