Show me your money, and I'll take that bet.
----- Original Message -----
From: "Sabri Oncu" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Saturday, September 15, 2007 2:30 AM
Subject: Re: [PEN-L] Hedge Fund Clones


> Michael:
>
> > Leigh, this is not real information.  To have a reporter say that
> > someone says something is happening does not always convey anything
> > new.  In this case it did not
>
> Of course it is real information. It is real in the sense that the
article
> Leigh sent appeared on CNN. Now, does the appearence of this article
on CNN
> mean that we will reach the oil peak in the next few years? Probably
not!
>
> But, sooner or later, that day will come.
>
> I do not understand what the issue is. Is it that there will never
come a day
> when the oil production will peak?
>
> I make a bet for a trillion dollars: one day in the future the oil
production
> will peak. Are there any takers of the opposite side? I tell you, if
there are
> any takers, I am guaranteed that I will not lose any money in this bet
and have
> a chance to make a trillion dollars with positive probability,
depending on
> when I die, which is also a probabilistic event of the future, which
includes
> the current time, since now is the begining of the future.
>
> This is called arbitrage of the first type in the finance jargon, if I
can find
> a taker of the opposite side, of course.
>
> It is all about the survival probabilities and how they are estimated.
>
> Best,
> Sabri
>
>
>
>
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