August 15th, 2007, 2:30 pm
Ruben not sure I understand you, but my example was based on that the money was invested on earth while you slowed your "age" at the black-hole space-station (high gravity enviroment) before returning to earth (see bottom of mid column page 10 "Assuming next that we place cash at earth with 10% annual return"). In other words I did not apply no-arbitrage principle here, that would involve everyone wanted to move to space-station for a while, while their investment on earth was growing fast (relative to time on space-station), but then production would fall on earth (people moving out) until we got equilibrium and no-arbitrag (based on certain assumptions). Yes if invested in economy at space-station you would be righ, but that was not case in this example and was reason for arbitrage opportunity. Did you as TraderJoe only spent 9 seconds on the article ? For more simplified example see here: (destruction should naturally be distortion, his accent (the man behind Einstein's voice supposedly also played in sopranos)Black-Hole Hedge Fund
Last edited by
Collector on August 14th, 2007, 10:00 pm, edited 1 time in total.