Chris Dodd, Hollywood, regulation, and more revolving door tawdriness 

Some entrepreneurs tried to set up a prediction market for films. The Hollywood lobby got this market banned through Dodd-Frank. Now former Sen. Chris Dodd is the most likely man to land the high-paying job as the head of the Motion Picture Association of America -- Hollywood's biggest lobby.

John Stossel has the story of why big studios fear markets, and thus love regulation:

"It would give an opportunity for those trying to produce (small) films and get distribution ... by showing that the market thinks those films can make $10 or $20 million," Jacobs said.

The betting would start at the very beginning of the process.

"First, it's a script, an idea. Then, an actor or director signs on, and the value goes up. And by the time the trailer comes out, there's a very good sense of the valuation of the property."

But politicians called that "speculation" and "gambling." Can't have that!

"The Commodity Futures Trading Commission did a three-year review and concluded that there was legitimate economic purpose behind this market," Jacobs added.

But last year, then-Sen. Chris Dodd and Rep. Barney Frank said no.

Now I hear Dodd might be appointed head of the movie studios' lobby. Cozy. Maybe sleazy. But that's how politics and regulation work.

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Timothy P. Carney

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