The feds have approved a proposal for a media company to begin trading futures in box office movie revenues, even though the movie industry is opposed to the idea.The first movie that investors can legally bet on is the movie ‘Takers’, which is scheduled to be released on August 20th, 2010 by Sony Pictures. The objections by the movie industry includes the concern that outside agencies could try and manipulate performance of movies.
In a recent article it also stated that:
In approving the Media Derivatives request, the commission noted that the exchange created to handle the contracts had obtained an agreement from Rentrak Corporation, a company that compiles box-office numbers for the studios, to bar its employees from trading in the contracts. The exchange would also require any studio that uses the contracts as a hedge against the performance of its own films to set up a firewall between employees who do the trading and those who work on a film.
In a dissent that accompanied the commission’s approval, Bart Chilton, one of the commissioners, said the need to wall off studio employees from their own films pointed to what he called a “fundamental flaw” in reasoning behind the approval, since such contracts are intended to help those in various businesses manage financial risk.
What I don’t understand is this. At a time when Wall St., the banking industry and even our own Congress can not be trusted, should we be allowing more of the insane behavior that put our country and the world in a recession?
Is this just legalized gambling?