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Levine's article "Arbitrage Discovered" might be my all-time favorite econ essay. It's about an investment product that let you trade on past stock prices in th
by Bartweiss 7y ago
Levine's article "Arbitrage Discovered" might be my all-time favorite econ essay. It's about an investment product that let you trade on past stock prices in the present. Levine is usually pretty calm and wonkish, but this arrangement was so breathtakingly self-destructive that he spends the piece writing things like "It's not actually an arbitrage. EXCEPT NO HOLY GOD IT IS THIS IS AMAZING."
https://www.bloomberg.com/opinion/articles/2015-02-27/arbitrage-discovered https://www.bloomberg.com/opinion/articles/2015-02-27/arbitr...
- santoshalper 7y agoGreat article. Thank you!
- StavrosK 7y agoThat is quite entertaining and borderline incredible, thank you.
- IgorPartola 7y agoDid this ever get resolved? Does George own the company already?
- kwelstr 7y agoAccording to the Wikipedia entry he won in court but they are still in court to collect money. https://en.wikipedia.org/wiki/Max-Herv%C3%A9_George https://en.wikipedia.org/wiki/Max-Herv%C3%A9_George >>By 2015, up to 50 court decisions had been rendered against Aviva France. In September 2014, the French Supreme court, the Cour de Cassation, ruled in favor of the George family, determining that the life insurance contracts, as drafted with the "known price" clause, are legally binding under French law.[18] Nevertheless, George is still in court against Aviva, having won on the principle of the legality of the contracts, he now needs to have his prejudice recognized and valued in a second ongoing battle.<<
- zifnab06 7y agoIt appears he won the court case stating the contract is legal under French last, and now has to fight another one to make them honor it. Courts aren't fast.