Post #2432254

2026-05-12 08:38 UTC

Following on from yesterday’s discussion of Scott’s close brush with reality on prediction markets, The Aussie PowerPoint Man is talking about the strategic risks posed by the new insider training opportunities opened up by these tools. A lot of what he’s saying applies to normal financial markets, but what’s striking is the way that prediction markets create those opportunities for people with much less immediate power and information by allowing them to bet directly on the kinds of immediate decisions they do have information on. I also thought the idea of integrating insider training red flags on public prediction markets into your early warning system was an interesting idea. These things aren’t actually useful for forecasting or making decisions because of how bad the incentives are, but people acting on those incentives absolutely creates a spike that can be meaningful in the short-term and potentially enable a few extra hours or minutes to prepare.

Replies (1)

@YourNetworkIsHaunted@awful.systems 2026-05-13 02:04

Adding on that this does feel like another application or consequence of the Great Man Theory of Everything, the idea the only the people with power and money matter because their power and influence are intrinsic to their person rather than being contingent on their social position. The average people empowered to commit insider trading by prediction markets have sufficiently limited individual agency that even collectively they don’t actually matter. In fact we want them to try their hand at the grift so that their insights can flow to the enlightened ones who can better use that information. They don’t matter enough to do real harm, but by watching the attempt we may be able to learn something.

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