Word Of The Day - Arbitrage

Daily Kos' Jerome a Paris' Talkin' Arbitrage -

The problem is that freedom has been equated with "freedom to make money", and "freedom to use money to influence and corrupt those in power", and that those that have been entrusted with the ultimate public good, money, have been busy siphoning off an increasing portion of it, while presenting this as being "successful" and as a desirable outcome. It was certainly successful within the narrowly defined vision of that word they have managed to impose upon society, but it was rather not desirable.
In any case, it's time to talk about the heart of the matter: the place of money in society, and how to trust those that have the power to move it around, for themeselves or on behalf of others.

Wiki's definition of Arbitrage -

In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit. A person who engages in arbitrage is called an arbitrageur - such as a bank or brokerage firm. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
If the market prices do not allow for profitable arbitrage, the prices are said to constitute an arbitrage equilibrium or arbitrage-free market.
An arbitrage equilibrium is a precondition for a general economic equilibrium.
The assumption that there is no arbitrage is used in quantitative finance to calculate a unique risk neutral price for derivatives.
Statistical arbitrage is an imbalance in expected nominal values. A casino has a statistical arbitrage in almost every game of chance that it offers - referred to as the house advantage, house edge, vigorish or house vigorish.