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geographic arbitrage

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  • Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3422
    Joined: 01/21/2016

    AR

    If you’re going to be pedantic, at least be correct.

    If you understood the word or knew its etymology, you’d realize you’re the one who is wrong.

    ” in order to take advantage of differing prices for the same asset.”

     

    Click to expand…

    Look, I know I’m not going to convince anyone.  I’ve had this argument a bunch of times before.  Invariably someone tries what you’re doing here.  It’s still wrong.

    Here’s a link to a dictionary definition: https://www.merriam-webster.com/dictionary/arbitrage

    Your just taking a part of the definition and making it the whole thing.

    That’s what arbitrage is.

    “taking advantage of different prices for the same asset” is a part of arbitrage, but it’s not the entire thing.

    I mean if that’s your definition look at the where that leads you.  If grocery store A sells milk for $3 per gallon and grocery store B sells milk it for $4 per gallon.  Are you engaging in grocery arbitrage by going to store A.  After all, you’re taking “advantage of differing prices for the same asset”.  Grocery arbitrage, gas station arbitrage, etc… the list is endless. I guess everyone is an arbitrageur and they don’t even know it.

    Click to expand…

    Perhaps the word “arbitrage” is used improperly, but everyone knows what we are talking about in this context – the long term financial advantage of working and living in a lower cost of living area, compared to working and living in a higher cost of living area. Is there a more precise term for it? Should we say that whole defining sentence every time? Or can we just continue to employ the improper word (and go on with our lives)?

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #189531 Reply
    Liked by pulmdoc, Tim, Anne, MPMD, Kamban
    Avatar AR 
    Participant
    Status: Physician
    Posts: 824
    Joined: 03/10/2016

    AR

    If you’re going to be pedantic, at least be correct.

    If you understood the word or knew its etymology, you’d realize you’re the one who is wrong.

    ” in order to take advantage of differing prices for the same asset.”

     

    Click to expand…

    Look, I know I’m not going to convince anyone.  I’ve had this argument a bunch of times before.  Invariably someone tries what you’re doing here.  It’s still wrong.

    Here’s a link to a dictionary definition: https://www.merriam-webster.com/dictionary/arbitrage

    Your just taking a part of the definition and making it the whole thing.

    That’s what arbitrage is.

    “taking advantage of different prices for the same asset” is a part of arbitrage, but it’s not the entire thing.

    I mean if that’s your definition look at the where that leads you.  If grocery store A sells milk for $3 per gallon and grocery store B sells milk it for $4 per gallon.  Are you engaging in grocery arbitrage by going to store A.  After all, you’re taking “advantage of differing prices for the same asset”.  Grocery arbitrage, gas station arbitrage, etc… the list is endless. I guess everyone is an arbitrageur and they don’t even know it.

    Click to expand…

    Perhaps the word “arbitrage” is used improperly, but everyone knows what we are talking about in this context – the long term financial advantage of working and living in a lower cost of living area, compared to working and living in a higher cost of living area. Is there a more precise term for it? Should we say that whole defining sentence every time? Or can we just continue to employ the improper word (and go on with our lives)?

    Click to expand…

    It’s the insistence that the term is being used correctly that is irksome.  If everyone just agreed that it’s not quite right (as you seem to), but that’s what everyone calls it, I’d have no problem.  Unfortunately, yours is not the universal position.

    I think you could just call it “moving to a LCOL area”.  That captures the essence of the issue, without the problem.  Maybe it’s a little wordier, but that’s what I call it.

    #189534 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2414
    Joined: 05/01/2017

    AR

    If you’re going to be pedantic, at least be correct.

    If you understood the word or knew its etymology, you’d realize you’re the one who is wrong.

    ” in order to take advantage of differing prices for the same asset.”

     

    Click to expand…

    Look, I know I’m not going to convince anyone.  I’ve had this argument a bunch of times before.  Invariably someone tries what you’re doing here.  It’s still wrong.

    Here’s a link to a dictionary definition: https://www.merriam-webster.com/dictionary/arbitrage

    Your just taking a part of the definition and making it the whole thing.

    That’s what arbitrage is.

    “taking advantage of different prices for the same asset” is a part of arbitrage, but it’s not the entire thing.

    I mean if that’s your definition look at the where that leads you.  If grocery store A sells milk for $3 per gallon and grocery store B sells milk it for $4 per gallon.  Are you engaging in grocery arbitrage by going to store A.  After all, you’re taking “advantage of differing prices for the same asset”.  Grocery arbitrage, gas station arbitrage, etc… the list is endless. I guess everyone is an arbitrageur and they don’t even know it.

    Click to expand…

    Perhaps the word “arbitrage” is used improperly, but everyone knows what we are talking about in this context – the long term financial advantage of working and living in a lower cost of living area, compared to working and living in a higher cost of living area. Is there a more precise term for it? Should we say that whole defining sentence every time? Or can we just continue to employ the improper word (and go on with our lives)?

    Click to expand…

    It’s the insistence that the term is being used correctly that is irksome.  If everyone just agreed that it’s not quite right, but that’s what everyone calls it, I’d have no problem.  Unfortunately, yours is not the universal position.

    I think you could just call it “moving to a LCOL area”.  That captures the essence of the issue, without the problem.  Maybe it’s a little wordier, but that’s what I call it.

    Click to expand…

    such a strange debate to have. this is a tiny online community and everyone knows exactly what we are talking about. the phrase is such that those who haven’t heard it can almost immediately grasp the meaning in context.

    it’s not as simple as moving to a LCOL area. rents are dirt cheap in ravaged parts of Detroit but that doesn’t mean that it’s a quick way to FIRE to live there. you could also live very cheaply in a truly remote part of a large state such as N. Dakota but once again the job might be there.

    again it’s so clear what is meant by this term.

    #189537 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2416
    Joined: 08/01/2016
    alpha investing
    Going to be a big change, should be fun. Cant really imagine a better environment to get back into the full swing of things. I am not looking forward to the weather, its going to be terrible. However, working with friends and the ability to basically work as much as you want to make in a very lcol area is attractive. Town seems pretty liveable, small, but nice, I mean I dont do anything really. My needs are pretty small in reality.

    Click to expand…

    Moving from LA area ( I hope I am guessing right) to a Midwest snowy area would be a change for you. I might have put up in cold weather area if only I had not experienced snow in NY ( which really is not that cold and snowy) and then come to a nice warm South East. Since then I have never considered any place that is not warm at least 9 months of the year.

    The beauty of US compared to a place like Canada is that if you like cold you can choose Alaska or the Midwest, if hot then then CA or FL or Hawaii or if you want something in between there are plenty of states for it too. I love the wide variety of weather choices offered, like a supermarket shelf with 40 different types of cereal to choose from.

    #189540 Reply
    Avatar AR 
    Participant
    Status: Physician
    Posts: 824
    Joined: 03/10/2016

    AR

    If you’re going to be pedantic, at least be correct.

    If you understood the word or knew its etymology, you’d realize you’re the one who is wrong.

    ” in order to take advantage of differing prices for the same asset.”

     

    Click to expand…

    Look, I know I’m not going to convince anyone.  I’ve had this argument a bunch of times before.  Invariably someone tries what you’re doing here.  It’s still wrong.

    Here’s a link to a dictionary definition: https://www.merriam-webster.com/dictionary/arbitrage

    Your just taking a part of the definition and making it the whole thing.

    That’s what arbitrage is.

    “taking advantage of different prices for the same asset” is a part of arbitrage, but it’s not the entire thing.

    I mean if that’s your definition look at the where that leads you.  If grocery store A sells milk for $3 per gallon and grocery store B sells milk it for $4 per gallon.  Are you engaging in grocery arbitrage by going to store A.  After all, you’re taking “advantage of differing prices for the same asset”.  Grocery arbitrage, gas station arbitrage, etc… the list is endless. I guess everyone is an arbitrageur and they don’t even know it.

    Click to expand…

    Perhaps the word “arbitrage” is used improperly, but everyone knows what we are talking about in this context – the long term financial advantage of working and living in a lower cost of living area, compared to working and living in a higher cost of living area. Is there a more precise term for it? Should we say that whole defining sentence every time? Or can we just continue to employ the improper word (and go on with our lives)?

    Click to expand…

    It’s the insistence that the term is being used correctly that is irksome.  If everyone just agreed that it’s not quite right, but that’s what everyone calls it, I’d have no problem.  Unfortunately, yours is not the universal position.

    I think you could just call it “moving to a LCOL area”.  That captures the essence of the issue, without the problem.  Maybe it’s a little wordier, but that’s what I call it.

    Click to expand…

    such a strange debate to have. this is a tiny online community and everyone knows exactly what we are talking about. the phrase is such that those who haven’t heard it can almost immediately grasp the meaning in context.

    it’s not as simple as moving to a LCOL area. rents are dirt cheap in ravaged parts of Detroit but that doesn’t mean that it’s a quick way to FIRE to live there. you could also live very cheaply in a truly remote part of a large state such as N. Dakota but once again the job might be there.

    again it’s so clear what is meant by this term.

    Click to expand…

    Ok, how about moving to an “LCOL with a good job”.  I thought the last part was implied though.  If you applied the “well, everyone knows what you’re talking about standard”, then no one would assume you’re moving to a place with no job.  But we can throw that in there.

    If there are parts of Detroit where the COL is actually dirt cheap, then I don’t know why that wouldn’t work.  But I don’t really know Detroit.

    Nevertheless, these edge case problems arise with the term geographic arbitrage as well.

    Like, I’ve said a bunch of times I know I’m fighting a losing battle here, and everyone is going to call it that.  C’est la vie.

    #189543 Reply
    Avatar dentoid 
    Participant
    Status: Dentist
    Posts: 86
    Joined: 02/08/2016

    AR

    If you’re going to be pedantic, at least be correct.

    If you understood the word or knew its etymology, you’d realize you’re the one who is wrong.

    ” in order to take advantage of differing prices for the same asset.”

     

    Click to expand…

    Look, I know I’m not going to convince anyone.  I’ve had this argument a bunch of times before.  Invariably someone tries what you’re doing here.  It’s still wrong.

    Here’s a link to a dictionary definition: https://www.merriam-webster.com/dictionary/arbitrage

    Your just taking a part of the definition and making it the whole thing.

    That’s what arbitrage is.

    “taking advantage of different prices for the same asset” is a part of arbitrage, but it’s not the entire thing.

    I mean if that’s your definition look at the where that leads you.  If grocery store A sells milk for $3 per gallon and grocery store B sells milk it for $4 per gallon.  Are you engaging in grocery arbitrage by going to store A.  After all, you’re taking “advantage of differing prices for the same asset”.  Grocery arbitrage, gas station arbitrage, etc… the list is endless. I guess everyone is an arbitrageur and they don’t even know it.

    Click to expand…

    Perhaps the word “arbitrage” is used improperly, but everyone knows what we are talking about in this context – the long term financial advantage of working and living in a lower cost of living area, compared to working and living in a higher cost of living area. Is there a more precise term for it? Should we say that whole defining sentence every time? Or can we just continue to employ the improper word (and go on with our lives)?

    Click to expand…

    It’s the insistence that the term is being used correctly that is irksome.  If everyone just agreed that it’s not quite right, but that’s what everyone calls it, I’d have no problem.  Unfortunately, yours is not the universal position.

    I think you could just call it “moving to a LCOL area”.  That captures the essence of the issue, without the problem.  Maybe it’s a little wordier, but that’s what I call it.

    Click to expand…

    such a strange debate to have. this is a tiny online community and everyone knows exactly what we are talking about. the phrase is such that those who haven’t heard it can almost immediately grasp the meaning in context.

    it’s not as simple as moving to a LCOL area. rents are dirt cheap in ravaged parts of Detroit but that doesn’t mean that it’s a quick way to FIRE to live there. you could also live very cheaply in a truly remote part of a large state such as N. Dakota but once again the job might be there.

    again it’s so clear what is meant by this term.

    Click to expand…

    Ok, how about moving to an “LCOL with a good job”.  I thought the last part was implied though.  If you applied the “well, everyone knows what you’re talking about standard”, then no one would assume you’re moving to a place with no job.  But we can throw that in there.

    If there are parts of Detroit where the COL is actually dirt cheap, then I don’t know why that wouldn’t work.  But I don’t really know Detroit.

    Nevertheless, these edge case problems arise with the term geographic arbitrage as well.

    Like, I’ve said a bunch of times I know I’m fighting a losing battle here, and everyone is going to call it that.  C’est la vie.

    Click to expand…

    Are you referring to the foreclosure properties that cost 3-5,000 dollhairs each in Detroit?

    #189547 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6063
    Joined: 01/12/2016
    medical school scholarship sponsor

    It’s going to be a change for sure. We shall see. I did a fellowship in Columbus and that has more snow, though by March I was ready to pull my hair out.

    It’s in Kentucky. I was mildly freaking our last week as it was 71 and they were on the edge of the polar vortex. I dont even own anything heavier than a goody aside from a skiing type jacket.

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    #189548 Reply
    Avatar AR 
    Participant
    Status: Physician
    Posts: 824
    Joined: 03/10/2016

     

    It’s going to be a change for sure. We shall see. I did a fellowship in Columbus and that has more snow, though by March I was ready to pull my hair out.

    It’s in Kentucky. I was mildly freaking our last week as it was 71 and they were on the edge of the polar vortex. I dont even own anything heavier than a goody aside from a skiing type jacket.

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    Click to expand…

    I don’t know whether calling Kentucky the midwest is better or worse than referring to moving to an LCOL as geographic arbitrage, but I’ll let someone else figure that out.  Nonetheless, good luck with the move.

    #189554 Reply
    Liked by octopus85
    CM CM 
    Participant
    Status: Physician
    Posts: 1143
    Joined: 01/14/2017

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    Click to expand…

    …..

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #189557 Reply
    Liked by Kamban, Zaphod
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6063
    Joined: 01/12/2016

     

    It’s going to be a change for sure. We shall see. I did a fellowship in Columbus and that has more snow, though by March I was ready to pull my hair out.

    It’s in Kentucky. I was mildly freaking our last week as it was 71 and they were on the edge of the polar vortex. I dont even own anything heavier than a goody aside from a skiing type jacket.

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    Click to expand…

    I don’t know whether calling Kentucky the midwest is better or worse than referring to moving to an LCOL as geographic arbitrage, but I’ll let someone else figure that out.  Nonetheless, good luck with the move.

    Click to expand…

    Thanks, I dont know what to call it honestly. Its eastish and smack dab next to Ohio/Indiana, so thats not midwest to me. Lots of people lump KY in with the south, but that also doesnt make sense. Who knows.

    #189564 Reply
    Liked by Tim
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2843
    Joined: 09/18/2018
    Thanks, I dont know what to call it honestly. Its eastish and smack dab next to Ohio/Indiana, so thats not midwest to me. Lots of people lump KY in with the south, but that also doesnt make sense. Who knows.

    Click to expand…

    https://en.wikipedia.org/wiki/Midwestern_United_States

    Who cares? If you’re close to Illinois, Indiana, or Ohio identifying with midwest is reasonable. Mountains and cities would surely be different. Whatever happened to the Great Plains states? Congrats on choosing a different path. I am sure the work atmosphere will help your satisfaction greatly.

     

     

    #189573 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2414
    Joined: 05/01/2017

     

    It’s going to be a change for sure. We shall see. I did a fellowship in Columbus and that has more snow, though by March I was ready to pull my hair out.

    It’s in Kentucky. I was mildly freaking our last week as it was 71 and they were on the edge of the polar vortex. I dont even own anything heavier than a goody aside from a skiing type jacket.

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    Click to expand…

    I don’t know whether calling Kentucky the midwest is better or worse than referring to moving to an LCOL as geographic arbitrage, but I’ll let someone else figure that out.  Nonetheless, good luck with the move.

    Click to expand…

    Thanks, I dont know what to call it honestly. Its eastish and smack dab next to Ohio/Indiana, so thats not midwest to me. Lots of people lump KY in with the south, but that also doesnt make sense. Who knows.

    Click to expand…

    KY is one of the states that I find hardest to characterize along with MO and Maryland.

    In general I think if you were on the wrong side in the Civil War it’s ok to call you a southern state.

    It’s funny I was born in KS which is a very agrarian state with typically conservative politics but KS was aggressively not with the South during the CW and there are marks of that all over the state.

    #189574 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6063
    Joined: 01/12/2016

     

    It’s going to be a change for sure. We shall see. I did a fellowship in Columbus and that has more snow, though by March I was ready to pull my hair out.

    It’s in Kentucky. I was mildly freaking our last week as it was 71 and they were on the edge of the polar vortex. I dont even own anything heavier than a goody aside from a skiing type jacket.

    On the bright side I do enjoy bourbon and everywhere seems to have 2 pages of offerings.

    Click to expand…

    I don’t know whether calling Kentucky the midwest is better or worse than referring to moving to an LCOL as geographic arbitrage, but I’ll let someone else figure that out.  Nonetheless, good luck with the move.

    Click to expand…

    Thanks, I dont know what to call it honestly. Its eastish and smack dab next to Ohio/Indiana, so thats not midwest to me. Lots of people lump KY in with the south, but that also doesnt make sense. Who knows.

    Click to expand…

    KY is one of the states that I find hardest to characterize along with MO and Maryland.

    In general I think if you were on the wrong side in the Civil War it’s ok to call you a southern state.

    It’s funny I was born in KS which is a very agrarian state with typically conservative politics but KS was aggressively not with the South during the CW and there are marks of that all over the state.

    Click to expand…

    What about Texas? Texas isnt south, southwest or anything other than Texas. I think its the strangest state in the union. Really the issue is that we have a need to over fit things into categories which just dont work.

    #189577 Reply
    CM CM 
    Participant
    Status: Physician
    Posts: 1143
    Joined: 01/14/2017

    The Census Bureau’s definition consists of 12 states in the north central United States: IllinoisIndianaIowaKansasMichiganMinnesotaMissouriNebraskaNorth DakotaOhioSouth Dakota, and Wisconsin. The region generally lies on the broad Interior Plain between the states occupying the Appalachian Mountain range and the states occupying the Rocky Mountain range. Major rivers in the region include, from east to west, the Ohio River, the Upper Mississippi River, and the Missouri River.

     

    https://en.wikipedia.org/wiki/Midwestern_United_States

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #189578 Reply
    Liked by Zaphod
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2843
    Joined: 09/18/2018
    Really the issue is that we have a need to over fit things into categories which just dont work.

    Click to expand…

    Hawaii?

    #189580 Reply
    Liked by Zaphod

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