00:02
Greetings.
00:03
Our question asks us to consider arbitrage and ask about the potential dangers of that.
00:13
So basically, arbitrage is a scenario in which someone, i'll use myself, in which i would choose a good and buy it in one location.
00:28
So let's just say water.
00:33
So i am buying water in, say, minnesota.
00:41
I think that's the state code for minnesota.
00:44
So any case, any state where it rains a lot.
00:47
So i'm buying just tons and tons of water.
00:50
And i am shipping that water to california, where there is, you know, nothing but sunshine and drought year -round.
01:03
We get about maybe seven days of rain per year.
01:10
And so the cost of water, for instance, to wash cars or fill swimming pools or whatever in minnesota is very small.
01:22
So i could buy a lot of water there, and i could sell it for a lot in california...