Archive for February, 2008

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What does Intrade think about the US Election?

February 23, 2008

Using Intrade prices to look at the election

I’ve used the last traded prices as my guide. I’ve classified all states that have a 90% or greater chance of going to one party as STRONG, 65-89 as MODERATE and 50-65 as WEAK.

STRONG REPUBLICAN (12 states): ID, AK, ND, UT, WY, KY, AL, GA, MT, NE, SD, TX
MODERATE REPUBLICAN (10 states): LA, MS, KS, OK, SC, AZ, NC, TN, WV, IN
WEAK REPUBLICAN (5 states): AR, NV, FL, MO, VA

STRONG DEMOCRAT (12 states): DC, RI, MA, NY, MD, VT, HI, IL, DE, CT, ME, CA
MODERATE DEMOCRAT (9 states): NJ, OR, MI, MN, WA, WI, PA, OH, NH
WEAK DEMOCRAT (3 states): NM, IA, CO

So the median outcome should presumably be the Republicans getting 27 states (the current Spreadfair prices are 26.5-27.5) and a 322-216 Democrat victory (the current Spreadfair midpoints are predicting only a 281-247 Democratic margin). If you are interested in arbitrage it might be worthwhile betting on the Democrats in some of the close states and balancing it out with a long position on Republican Electoral Vote spreads, or going short the Republicans in the EV spreads and long in the state contests.

Given that my predictions involve the Republicans getting at least 35 states if Hillary is the candidate and 40 if Obama is heading the ticket, I believe that there is a lot of value in these stats.

Delaware, California, Michigan, New York New Jersey come to mind.

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Why I have just put £50 at 12/1 on the man below

February 23, 2008

Why I am betting that Joseph Lieberman will be on the bottom of the Repblican ticket.

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Right now it seems very likely that, barring some sudden event, John McCain will be the Republican nominee. A lot of words are going to written about the upcoming contest on this web-log alone so I have decided to focus on the bottom half of the ticket, the vice-presidency. The vice-presidency has frequently been derided as a thankless job, with a lack of real power but the responsibility to carry the can for every mistake that the President make. Indeed, John Garner once compared it to, ‘a barrel of warm spit’. However, given that nearly every President has either faced an attempt on their life, a major health scare or a scandal (or any combination of the three) the choice of vice-president will be important. At the same time, the memory of the negative publicity that resulted from Bush’s choice of Dan Quayle should remind McCain that this is not a choice without electoral consequences (though Bush did of course win the 1988 election with Quayle as his running mate).

There are essentially three things that a running mate should possess; the ability to take over the reins if need be, the ability to boost the ticket and the absence of anything that might reduce the ticket’s popularity. As a moderate in a party that is perceived (probably unfairly) to be dominated by those who are not only to the right of Attila-the-Hun, but probably think that Attila was a big government liberal and soft on immigration, there have been calls for John McCain to appoint someone with impeccable conservative credentials in the fiscal or social field to keep on board. This also means that Rudolph Giuliani, Lindsay Graham or even Charlie Crist can be ruled out. While even dyed-in-the-wool Republicans accept that choosing polarising figures like the failed Pennsylvania Senator Richard Santorum or John Ashcroft would not be a wise move, Mitt Romney and Mike Huckabee have both been suggested to placate fiscal and social conservatives respectively. At the same time there have been calls for more unorthodox choices such as Governor Sarah Palin of Alaska, Secretary of State Condoleezza Rice and even General David Petraeus.

However, all these suggestions have severe drawbacks. The selection of Romney would alienate social conservatives while choosing Mike Huckabee would alienate independents. Sarah Palin may have an appeal that transcends politics, but putting a Governor who has barely spent a year in office a heartbeat away from the Presidency would undermine McCain’s arguments about experience. Although the choice of Condi Rice would be groundbreaking, she is not a natural campaigner and many people do find her a rather distant and cold character. In any case, while McCain needs to emphasise his hawkish ness, Condi is simply too connected with the Bush administration on all issues. Finally, we know little about David Petraeus’s beliefs on economic and social issues, and his willingness to deal with former Ba’athists, even in defiance of the administration, does not exactly inspire confidence about the sort of foreign policy advice that he would give to John McCain.

Of course picking the independent Senator Joe Lieberman, will have many potential negatives. There will need to be a lot of work put in to mollify the Evangelical Right about the sort of Supreme Court justices a Lieberman administration would appoint, in the event that something tragic happened to McCain. However, I believe that choosing Lieberman could paradoxically unite the Republican party behind the ticket while convincing ‘Charlie Wilson Democrats’ to consider sending the party that has deserted them, a clear message in November. The appeal of Lieberman’s message on family values and faith in public life should not be underestimated as well. At the same time selecting McCain could put a number of North-Eastern states in play. Indeed, if Obama is the nominee McCain could realistically compete in all states, including the traditional Democratic strongholds of New York and Massachusetts.

There is also the argument that selecting a conservative Democrat like Lieberman could actually unite the Republican party. Because of his Democratic background and the impossibility of him winning a Presidential nomination (even if he assumes the office of the Presidency) Lieberman allows the Republicans to delay the battle between Social and Economic conservatives to 2012 or 2016. If McCain nominated someone from within the Republican party, that candidate (and that candidate’s faction) would have a tremendous advantage when McCain stepped down. By nominating Lieberman (and giving both Huckabee and Romney positions in the cabinet) McCain could ensure that there was a level playing field in any future contest for the Republican nomination. Lieberman’s outsider status means that he has not offended anyone in the Republican party and will be above internal Republican politics.

Despite his denials of interest in the position, there are also strong indications that Lieberman is being groomed for the position. Although he briefly said positive things about Giuliani last summer he was a major part of pro-surge rallies in September. He endorsed McCain in December and spent a lot of time on the campaign trail for him, not just in Connecticut, New Hampshire and Florida, but also in traditionally conservative states, such as South Carolina. Although Tim Pawlentry did some campaigning as well, McCain failed to carry Minneapolis. Lieberman has also attended international conferences on McCain’s behalf and they most notably made a join appearance together at the National Prayer Breakfast. Lieberman was also awarded the ‘Keeper of the Flame’, by Human Events Magazine. Indeed, New Gingrich stated that ‘McCain he could do something truly different and potentially ask [Democratic Senator] Joe Lieberman to form a unity ticket because of the war to bring together Democrats and Republicans’ while William Kristol stated in 2007 that, ‘McCain-Lieberman, Thompson-Lieberman, Romney-Lieberman, Huckabee-Lieberman–those sound like winning tickets to us…why settle for a victory if you can have a realignment?’.

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‘Inside Baseball’ has little effect on the Ohio contest

February 23, 2008

McCain maintains a wide lead over Huckabee and Clinton is still comfortable.

Using Samplemiser, I have produced the following projections for Ohio:

John McCain 57.37
Mike Huckabee 29.94

Hillary Clinton 50.12
Barack Obama 42.21

Hillary Clinton’s lead in Ohio is unchanged while McCain’s is still huge. The NYT story may have stopped McCain increasing his lead but it is still too large for Huckabee to overcome. However, this is no time for complacency for the Arizona Senator since he needs to break 60% in a constest other than Washington DC (where he got 67%).

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British Polling Projections: Hung Parliament

February 22, 2008

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Adding the latest YouGov poll to my collection and filtering them produces the following projections:

Conservatives 39.86 (293)
Labour 33.98 (290)
Liberal Democrats 18.10 (37)

As a point of reference, popular alternatives produce the following; (Poll of polls) Con 37.8 Lab 33.8 LDm 18.2 (5 Poll Rolling Average) Con 38.6 Lab 32.6 LDm 18.6.

The polling is unambiguous that the Northern Rock nationalisations has not (for the moment) at least been the knockout blow that the Conservatives were hoping for. It is now conceivable that we may actually see Labour consistantly ahead in the polls by the late spring.

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Hillary still has a healthy lead in Ohio

February 22, 2008

Could she actually beat Obama in the Buckeye state?

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My latest Samplemiser projections (for the Democratic contest only) are:

Hillary Clinton 50.49
Barack Obama 42.84

Although there is plenty of time for Obama to overcome a seven point lead, the fact it is still that large after all the negative press and the string of defeats, suggests that Hillary could pull a victory off in Ohio, even if she loses in Texas.

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Updated Texas Projections

February 22, 2008

McCain’s lead is increasing while Clinton now only leads Obama by a hair

Using Samplemiser, I have produced the following updated projections for Texas:

Hillary Clinton 47.86
Barack Obama 45.65

John McCain 53.19
Mike Huckabee 29.85

Hillary Clinton’s lead in Texas still exists, but it is now barely a sliver of what it used to be. Huckabee is actually losing ground, suggesting that even his role as a gadfly is now falling apart as Republicans rally around McCain.

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Miscalleneous

February 21, 2008

I’ve put £50 at 13.00 (12/1) on Joe Lieberman being the Republican’s Vice Presidential choice – I’ll be writing an article about it tomorrow. I’ll also be looking at the next primary opinion polls – as well as producing some detailed head-to-heads for November. Stay tuned…..

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Betting Journal: Partially closing my Giuliani short

February 21, 2008

I bought 15 contracts on Giuliani winning the Republican nomination at 1.5, reducing my open exposure to -10 of Rudy and -10 on Ron Paul. Although I think 1.5 is a steep price to pay, people evidently believe that something will happen to McCain between now and the convention and I’ve got a lot of ideas for where my funds can go next.

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Texas Projections

February 21, 2008

McCain has a strong lead over Huckabee but Clinton barely leads Obama

Using Samplemiser, I have produced the following projections for Texas:

John McCain 50.95
Mike Huckabee 35.58

Hillary Clinton 49.89
Barack Obama 45.59

Hillary Clinton’s lead in Texas should compress even further, though now she has to campaign in both states, she can’t duck out of this contest. However McCain seems to be extending his lead over Huckabee, rather than seeing that lead compress, indicating that the Republican party is rallying around him.

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Hillary Clinton’s price falls below 20

February 20, 2008

Is the end night for the Senator from New York ?

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After her drubbing in Wisconsin her price has fallen to around 15. Although her chances of winning the nomination have fallen to around 40%, we should still remember that she is virtually tied with Obama in both delegates and the national polls. If she manages to win Ohio and Texas, she becomes the frontrunner again. She may be down but she is by no means out.

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New Ohio Projections

February 20, 2008

McCain widens lead over Huckabee but Clinton’s lead narrows

Using Samplemiser, I have produced the following projections for Ohio:

John McCain 59.55
Mike Huckabee 29.56

Hillary Clinton 52.02
Barack Obama 42.33

Hillary Clinton’s lead in Ohio has narrowed while McCain’s has widened. The Republicans seems to be coalescing around McCain, whereas Clinton support is leaking away. Indeed, it might be possible that the result in Wisconsin leads voters to desert Hillary, not because of her merits, but as a clear signal that they do not want a brokered convention.

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British Polling Projections: Hung Parliament

February 20, 2008

Conservatives lead in votes but Labour now lead in seats.

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Adding the latest ICM poll to my collection and filtering them produces the following projections:

Conservatives 37.7 (273)
Labour 33.66 (297)
Liberal Democrats 20.34 (50)

As a point of reference, popular alternatives produce the following; (Poll of polls) Con 38 Lab 33.6 LDm 17.8 (5 Poll Rolling Average) Con 38 Lab 33.4 LDm 18.2.

This seems to suggest that Labour is closing the gap with the Conservatives. Paradoxically, the Northern Rock nationalization may have drawn a line under the whole sorry saga, even if it is the worse possible solution.

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New Wisconsin projections

February 19, 2008

Obama now ahead of Clinton and McCain still leads Huckabee

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Using Samplemiser, I have produced the following projections for Wisconsin:

John McCain 50.3
Mike Huckabee 41.62

Barack Obama 51.47
Hillary Clinton 41.99

As you can see from the above chart, Obama has regained his lead over Clinton while McCain can breathe a little easier. While conventional wisdom will say that the ARG poll which had Clinton ahead of Obama was a rogue poll, I believe that Clinton had genuinely closed the gap, only for her clumsy decision to leave Wisconsin early (which was ironically reversed once the poll came out) to kill her momentum stone dead.

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British Polling Projections: Conservative majority of 4

February 19, 2008

TPM looks at the state of the British polls

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Using Samplemiser to filter all British polls since late August produces the following (seat projections in brackets):

Conservatives 40.98 (327)
Labour 31.99 (264)
Liberal Democrats 16.02 (28)

As a point of reference, popular alternatives produce the following; (Poll of polls) Con 38 Lab 33.2 LDm 17.8 (5 Poll Rolling Average) Con 38 Lab 33.6 LDm 18.

This is dispiriting news for all parties. It’s bad for Labour because of the 8.99 deficit in the popular vote. It’s bad for the Conservatives because they have barely got a majority. Despite the fact that that no party will get a decisive majority, suggesting that they might have to be invited into a coalition government, the Liberal Democrats will lose a large number of seats. If these results were repeated the Conservatives would probably run a minority government for six months or so and then call another election.

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Modelling Congressional Elections

February 18, 2008

Introducing my ‘Congressional Psuedo-swingometer’

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As a PhD student who has to complete his thesis by June I haven’t got the time to handicap hundreds of Congressional races, or to produce a complex swingometer. However, I’ve produced a simple model to explain how national votes translate into Congressional Seats.

GOP Seats = 195.446 + 4.225x

Where x = GOP% of national vote – DEM% of national (not the two party) vote.

Although this model does not take gerrymandering, uncontested seats or incumbency into account it does a pretty good job of modelling how changes in the national vote translates into Congressional seats. For the statisticians among you the model has a correlation of 0.902 and an r2 of 0.81. It correctly predicts control of the House 21 out of 24 times since 1960 with the worst errors being 2006 (GOP getting 28 more seats than expected) and 1976 (GOP getting 18 less seats than expected). Given that portions of the most controversial boundary changes of the last eight years have been unwound and large numbers of Republicans are retiring, a scenario with the Republicans doing better in terms of the national vote than they did in 2006 but losing a significant number of seats is not impossible.