IEM Starts California Recall Market

If you want to know the outcome of California's recall, you might look to the UNIVERSITY OF IOWA, where a futures market run by six professors has out-predicted 75 percent of polls in recent presidential elections. As voters and pundits across the nation speculate about whether or not Gov. Gray Davis will be recalled, and who might replace him as governor, investors from across the nation have begun buying shares of Arnold Schwarzenegger, Lt. Gov. Cruz Bustamante, State Sen. Tom McClintock and other gubernatorial candidates. Investors, who can risk up to $500, hope to make a quick buck in the Iowa Electronic Market by buying up "contracts" of the winner and cashing in on election day. The Daily Bulletin serves Ontario, Calif.