1 thought on “How the financial crisis could’ve been avoided!!”
This is interesting, in another way.
If there is a consistent 8-10% advantage on these betting sites, then one can use arbitrage to make an assured profit. Buy Obama where Obama is cheaper, and buy McCain where McCain is cheaper. No matter who wins, you make a profit on the spread between the two bets.
It would be a good thing for people to actually do this, because it would bring the prices on the two markets more into line, thus improving the predictions on both markets.
This is interesting, in another way.
If there is a consistent 8-10% advantage on these betting sites, then one can use arbitrage to make an assured profit. Buy Obama where Obama is cheaper, and buy McCain where McCain is cheaper. No matter who wins, you make a profit on the spread between the two bets.
It would be a good thing for people to actually do this, because it would bring the prices on the two markets more into line, thus improving the predictions on both markets.