The Great Divergence

[Zenda]

You don't believe that the growing inequality is a problem? You don't believe that pyramid schemes are a problem?

No. Large inequality might lead to problems, or be a symptom of problems, but I don't see how it would be a problem in itself. The same goes for pyramid schemes.

Arbitrage is an idea. Its proper and original meaning was a risk-free trade by buying one commodity, and selling it directly back for a higher price. Some people deluded themselves with fancy models into believing that a certain type of statistically calculated trade was equivalent to arbitrage. It isn't, and it never was. But they thought it was, so they called it "statistical arbitrage". Their mistake does not redefine the word.

I don't really care who was first to use the word properly. I only mentioned arbitrage as one of the mechanisms that can induce autonomic growth of phantom capital, and used Wiki to get more information on it. I understand this issue is important to you, as a student of Economic History, but unless you want to imply that 'academic' arbitrage is what's in use, and that it could never induce this autonomic growth, it is beside the point, imo.

Arbitrage is about buying something at one price, then selling it back at a higher price, risk-free.

As I said before: Buying something at the current price on a given market, and selling later at the same market for a higher then-current price does not require arbitrage, by definition. Academic or otherwise.