Columnist Cites IEM

A columnist writing about California's recall election notes that the current hot market in the Iowa Electronic Markets--the UNIVERSITY OF IOWA business college's "real-money futures markets in which contract payoffs depend on economic and political events such as elections"--is California's recall election. The IEM opened for recall trading on Aug. 27 in two markets: one on the recall itself and the second on a possible new governor. It's a benign, business-school spin on the now-defunct Pentagon online futures market for betting on Middle Eastern developments that was advertised as a vehicle for profiting on assassinations and other terrorist acts. Unlike Iowa's program, the Pentagon's was not promoted as a possible part of a college curriculum.