Well I stumbled upon a few other articles, for anyone interested.
First, we have a follow-up on the article. The plan has been canceled, and it seems many were unaware of it. Surprise, surprise.
http://story.news.yahoo.com/news?tmp.../terror_market
Next up, the San Francisco Chronicle has an article on it, which explains it much better. Still can't say I support it, but the article does clear some things up, and explains the basis behind it. I might even go so far and say it's a decent idea on paper, but it would never work in the real world.
http://www.sfgate.com/cgi-bin/articl...9/MN126930.DTL
And last but not least, this isn't the Pentagon's only experiment involving the stock market. A grant was given to
MarTek (Market Technology Systems) to develop these markets. Currently they have demo markets on the
Homeland Security threat level, and the
spread of SARS.