Streams

Intrade Pulls Out of the U.S.

Wednesday, November 28, 2012

Emily Lambert, associate director of Intellectual Capital at the University of Chicago Booth School of Business, discusses why U.S. regulators sued Intrade and why Intrade is closing its doors to U.S. customers.

 

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Emily Lambert
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Comments [5]

John from NYC

This appears to be an online version of the type of activity that the Enron Company was doing.

Nov. 28 2012 11:26 AM
Mark from Westchester

Big difference between commodity markets and Intrade. As last caller aptly described it, Intrade is making book on probablity. A commodity market is kept honest by the possibility of a buyer being required to take delivery of the underlying commodity. For every buyer of one lot of a given commodity, there is a seller. With Intrade that is not true. Intrade must take the opposite side of a transaction if a counterparty is not available.

Nov. 28 2012 11:21 AM
BK from Hoboken

This story shines a light on an entire financial and trading industry that is really nothing more than gambling with fancy financial terms. Financial gambling that produces nothing, does nothing for society, and socialized its losses.

Nov. 28 2012 11:13 AM
Larry from Upper East Side

(1) How is this any different from the hedge fund market; and (2) what's wrong with betting for or against an airstrike on Iran? If you're someone with an economic interest in Israel or in defense spending, then maybe betting on an air strike is a wise way to hedge an investment.

Nov. 28 2012 11:11 AM
John A

Betting on negatives creates a (limited) incentive for individuals to want those negative outcomes, so is a detriment to society.

Nov. 28 2012 11:10 AM

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