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"At the moment it's even-money that George Bush will pardon Scooter Libby--or about 6 to 5, to be precise (a bettor wins $6 for every $5 bet that Bush will pardon Libby), based on wagers placed on internet bookmaking sites like Intrade. Such betting markets have proven to be extraordinarily accurate forecasters of political outcomes.
One month ago, a Libby pardon was a long shot, as far as handicappers were concerned. I spoke to one of their luminaries, Kentucky's Ray Paulick, who was a protégé of the notorious oddsmaker "Jimmy The Greek." Now he edits the thoroughbred industry insiders' must-read Paulick Report.
In his estimate, prior to the holidays, the odds of a Bush pardon of Libby were 8 to 1 ($8 for every $1 bet). "People, unlike stocks and mutual funds, perform in accordance with past performance," he explained. "Past performance--what we look at in handicapping a horserace--would lead one to conclude that the current administration would consider the pardon. But Bush already addressed the Libby issue with the commutation."
Then came the Dec. 22 Wall Street Journal editorial that began, "Rarely can Presidents improve their legacy in an Administration's twilight days. But President Bush now has that opportunity, by undoing a measure of the injustice inflicted on I. Lewis 'Scooter' Libby." The sentiment has been echoed by a spate of other conservative publications, including National Review. Bettors evidently believe Bush will be swayed."
http://www.huffingtonpost.com/keith-thomson/surge-in-wagering-in-favo_b_158758.html