I felt the same, and came to the same conclusion you did. I can see the clown suit solution becoming a gaffe, as well; many demographics didn't like the way GWB came across as fratboyish, and bets with reputation-harming terms have that association.
Since a presidential candidate who wins will be in a position to influence the results of policy decisions, I don't think their participation in futarchy-style bets would signal well, either. But there's gotta be some politically-correct way for them to put their money where their mouth is...
For those who don't follow politics, Mitt Romney offered to bet Rick Perry $10,000 that Perry had misquoted Romney. (video)
Most political commenters see the move as a gaffe. They claim the bet made Romney look out of touch, because it reminded voters that Romney is rich enough to afford $10,000.
As a believer in prediction markets, I am disappointed in the public's reaction. Romney made a bold move by making his beliefs pay rent. Critics point out that $10,000 is "chump change" for Romney, but Romney still but himself at risk. If he had lost the bet, Perry could have made a production about cashing a $10,000 check from a disgraced Romney. Besides, if money were the issue, Perry could have countered with a non-monetary bet. "Loser has to attend the next debate in a clown suit" or something.
If politicians had to face real consequences every time they made a false statement, they would have a larger incentive to tell the truth. It's a shame Romney's bet probably won't catch on.
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This post is not an endorsement of Mitt Romney or his politics. All I am endorsing is political betting.