Bill Clinton: Bet on Barack

Bill Clinton, who not long ago famously criticized Barack Obama's stance on Iraq as "the biggest fairy tale I've ever seen," is now foreshadowing a fairy tale ending on Election Day. With his party on the mend and his own political stock finally showing some strength, the former president-turned pundit-in-chief is doubling down on a new prediction: Barack Obama is going to win big!

"I predict that Senator Obama will win and win pretty handily," said Clinton, who met Barack Obama for lunch at the former president's Harlem office.

For his own part, the Democratic nominee seemed convinced. "He knows a little something about politics," said Obama.

Bottom Line - If you buy the fact that Bill Clinton has regained his magical political touch, it's time to buy Obama on Intrade.

Gingrich: Obama Will Win in Iowa

Newt Gingrich, polarizing politician-turned prolific predictor, is at it again. In an interview with Diane Sawyer on Good Morning America, the former Speaker of the House said the smart money is now on Obama in Iowa. "My guess is Senator Obama's going to win Iowa and that he's going to win it by a surprising margin," he said.

Just two months ago, however, Gingrich seemed convinced that Clinton was unstoppable. "I think the odds are 80 per cent that Sen. Clinton is the next president," he said after announcing that he didn't intend to compete for the Republican nomination in 2008. "I think she is almost certainly going to win the Democratic nomination."

So why is Newt suddenly hedging on Hillary? He says it's a hunch. "The emotional energy that Senator Obama's building is more powerful than the emotional energy Senator Clinton's building," he told Sawyer.

Slightly more scientific support for such speculation can be found in this week's latest ABC/Washington Post. Senator Obama has opened a slight, albeit still statistically insignificant, lead over Clinton and Edwards (30%-26%-22% respectively). On Intrade, the two top contenders are trading in a tie for the lead in Iowa at 45.

The Bottom Line: If you trust the former Speaker of the House with your money, invest in Obama to win in Iowa.

Daily Prediction: Simon Says Obama Won't Be VP

Roger Simon, chief political columnist at The Politico, is convinced that it's the presidential nomination or bust for Barack Obama.

Already weighing Hillary's Clinton's VP possibilities, he notes: "There would be enormous pressure within the party for her to select Barack Obama. It would be a unifying choice, an historic choice and she wouldn’t do it in a million years."

Intraders, however, aren't nearly as convinced. Obama, who is trading at 19 for the Democratic VP nomination, is currently holding in second place on the site behind New Mexico Governor and fellow Democratic candidate Bill Richardson.

But Simon, who thinks Richardson comes with far too much baggage from the last Clinton administration, thinks Bill Clinton's former Energy Secretary is also an unlikely choice (Anyone who saw his pathetic performance on Meet The Press on May 27 would be inclined to agree.).

"Though Richardson would be pleased as punch to get the bid, though he would add geographic balance to the ticket and though he is a governor, which voters tend to like, somehow I don’t think it is in the cards," he said.

Bottom Line: Short both Obama and Richardson for the Democratic Vice Presidential nomination and buy Evan Bayh and Mark Warner.