So you think that we learned something from the 2008 financial meltdown?
A major factor in the financial crisis was the use of synthetic derivatives that essentially turned into a casino game. These abstruse financial instruments brought about, among other things, the collapse of Lehman Brothers, the bailout of AIG and numerous banks and the bankruptcy of the country of Iceland.
So it would seem that, if anything, some sanity would be restored to the use of these mechanisms.
NADEX, the North American Derivatives Exchange has proposed introducing derivative contracts that would, in essence, allow "investors" to bet on the outcome of elections.
Reuters reports, "A small Chicago futures exchange aims to be the first regulated U.S. market to offer legal betting on the outcome of a U.S. presidential election.
The North American Derivatives Exchange is set to ask the Commodity Futures Trading Commission on Monday for its stamp of approval on contracts tied to the winner of the 2012 presidential election as well as on which political party will dominate the U.S. House of Representatives and Senate.
The contracts could start trading as soon as next month, when a series of Republican nominating contests kicks off with the Iowa caucuses on January 3."
REALLY? Is this what the capitalist system, whose supposed purpose is the efficient allocation of capital to productive economic purposes, has become? Up to now this has been the domain of Irish betting parlors.
One has to be, to use Mitt Romney's term, "zany" to imagine what might be next. But apparently "zany" has become the coin of the realm among today's financial whiz kids.
Let's keep those tax breaks for the idle rich (excuse me, "job creators") coming. Some of their "whizzing" will eventually trickle down to the other ninety-nine percent of us.