Dems Now Have the Edge

According to the traders in the Iowa Electronic Market, the Democrats are now more likely to take the House than are the Republicans. At the same time, it is becoming increasingly clear that this race is UP IN THE AIR. Options traders are willing to pay $.35 for the right to win a dollar in the event that the Democrats take the house (with Repubs maintaining the Senate). A Republican majority in both Houses is going for $.32. Meanwhile, there is quite a jump in the likelihood of the Dems taking BOTH houses, with traders willing to pay $.26 for that contingency, the highest amount since August.

The Dem numbers jumped on weekend news highlighting the North Korean nuke test and the flailing Foley scandal.