Trading futures on hurricane hits
Posted: Wed Jul 20, 2005 2:47 am
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
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