Arbitrage

Yes, prices do get out of line.

The interesting question is, what sort of system might we wish to have to correct such out of line prices?

That would be a market system, wouldn\’t it? One where it is possible to purchase goods and or services in one market and then sell them again in another. The increase in demand in one and the increase in supply in the second thus working to equalise prices across the different markets.

And yes, this is as true of stocks, bonds, currencies, commodites and capital as it is of cases of wine.

Which is one of the reasons why all those insisting we must stop all this \”international speculation\” are so misguided.

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