Trading futures on hurricane hits

[LaPlaceFF]

Dawn Ostrom, ABC26News

July 19, 2005, 10:14 PM CDT

NEW ORLEANS -- A group of University of Miami professors is working to set up a market for trading futures on where hurricanes will strike.

The market should be running in the next week. It will be called MAHEM, short for Miami Hurricane Event Market.

Jefferson Parish Emergency Management Director Walter Maestri says the market is proof people will take a gamble on anything. He says, "I don't like to see the trivialization of such a very, very serious issue."

But, financial experts say there could be a benefit to it. They say when there is a financial incentive, often forecasting ability improves. And, if people are in a target area, they may be able to recoop their storm losses with wins in the hurricane market.

For now, trading will be limited to $500 per hurricane season. The season runs from June through November.
Copyright © 2005, WGNO

[joseph01]

Hmmm...with Storm2K as a resource, I may be able to get rich off this.

[Derek Ortt]

I'd appreciate if you took back that comment regarding those creating this and participating in this being morons. I happen to personally know one of the profs (Dave Nolan and even provided input in determining where the atl and Carib zones begin and end)

[alicia-w]

But it does seem morbid to attempt to profit from someone's misery.

[joseph01]

But it does seem morbid to attempt to profit from someone's misery.

I don't thinkk so. Only if you tend to view things that way. I think it's an interesting idea. People would indeed put more thought and focus into something when profits are involved. I do wonder though, if some might view the results as more important for evac. situations, than official recommendations. I'll watch this with interest.

[The Big Dog]

I envision the smarter, more well-informed people taking away a lot of money from people who are just playing for fun. In poker tourneys, they refer to them as "dead money." Takes more than just putting down a C-note on Gert and naming some random island. This isn't Calder.

In fact, I'm kinda wondering if this won't just turn into a big meteorologist gambling ring. Derek, do you know if they have any restrictions on who can play?

[Derek Ortt]

I made a request that NHC personnel NOT be permitted since their advisories are the determining factor. It would create a comflict of interest. Not sure if thatw as decided upon or not. When Dave Nolan comes back to RSMAS soon, I'll ask him.

One thing is sure, I'M IN THIS MARKET and will soon be sending in a couple of hundred. may as well make a little extra on the side

[kevin]

I'd play and don't need someone's morality imposed on me, since I am causing 0 points of pain and misery to anyone.