TIRED THINKING KILLS BOLD WAGER PLAN EDITORIAL 30 July 2003 Dayton Daily News A6 The pentagon's genius is being underestimated. Its plan to deter terrorism by setting up a wagering pool has been abandoned under bipartisan pressure, universal ridicule and unreasoning fear of comedians. It's a shame. Here the Pentagon had this subtle strategy for convincing the terrorists that the American government has been taken over by bobbleheads who wouldn't know foreign policy from rec room activity at a mental hospital. The advantages of imparting this impression can hardly be overstated. The terrorists would stop bothering to encode their e-mail and could be rounded up quickly. Admittedly, there was one flaw in the strategy: Non-terrorists noticed the apparent bobblehead takeover even before the terrorists. The non-terrorists decided that such a takeover has downsides. And they turned out to be a more potent force than the obsessed terrorist fighters in the Pentagon remembered. The now-abandoned wagering plan was deviously elegant. The government would establish and monitor a pool on when and where terrorist attacks were going to happen. That would provide the government with crucial information, much the way the government can find out how the dice are going to roll in Las Vegas by watching a high-roller's bets. If you don't get the appeal of the government's plan, you just don't understand the genius of free markets the way the bureaucrats in the Pentagon do. Some critics have suggested that real terrorists could have confused the government by betting that an attack would not take place, even as they were planning one. Those critics seem to think the terrorists are willing to lose their money. This is ridiculous, of course. Terrorism is about risking lives. Are people going to risk lives and money? The wagering-pool idea was associated with the Pentagon office of retired Adm. John Poindexter, a central figure in the Iran-contra scandal of the 1980s. Iran-contra was the plan to illegally raise money for Nicaraguan insurgents by selling arms to terrorist- supporting Iran in contravention of the announced policy of Mr. Poindexter's president. So some people are not surprised at the Poindexter connection. They will likely not resist the temptation to call the wagering pool the worst idea since Iran-contra. But now it's back to square one for the government. The terrorists will have to be combatted through the regular gathering of intelligence. That intelligence will come through the same agencies that had President George W. Bush talking so certainly before the Iraq war about an Iraqi nuclear weapons program and about existing chemical and biological arsenals. No wonder the people at the Pentagon were so eager to find another way to gather information.