Current takeaways from the 2024 US election <> forecasting community.
First section in Forecasting newsletter: US elections, posting here because it has some overlap with EA.
1. Polymarket beat legacy institutions at processing information, in real time and in general. It was just much faster at calling states, and more confident earlier on the correct outcome.
2. The OG prediction markets community, the community which has been betting on politics and increasing their bankroll since PredictIt, was on the wrong side of 50%—1, 2, 3, 4, 5. It was the democratic, open-to-all nature of it, the Frenchman who was convinced that mainstream polls were pretty tortured and bet ~$45M, what moved Polymarket to the right side of 50/50.
3. Polls seem like a garbage in garbage out kind of situation these days. How do you get a representative sample? The answer is maybe that you don't.
4. Polymarket will live. They were useful to the Trump campaign, which has a much warmer perspective on crypto. The federal government isn't going to prosecute them, nor bettors. Regulatory agencies, like the CFTC and the SEC, which have taken such a prominent role in recent editions of this newsletter, don't really matter now, as they will be aligned with financial innovation rather than opposed to it.
5. NYT/Siena really fucked up with their last poll and the coverage of it. So did Ann Selzer. Some prediction market bettors might have thought that you could do the bounded distrust, but in hindsight it turns out that you can't. Looking back, to the extent you trust these institutions, they can ratchet their deceptiveness (from misleading headlines, incomplete stories, incomplete quotes out of context, not reporting on important stories, etc.) for clicks and hopium, to shape the information landscape for a managerial class that... will no longer be in power in America.
6. Elon Musk and Peter Thiel look like geniuses. In contrast Dustin Moskovitz couldn't get SB 1047 passed despite being the s