"One small nitpick: It could be more explicit that in Assumption 2, B1 and B2 range over actual observation, whereas in Assumption 1, B ranges over all possible observations. :)"
Actually, I implicitly was thinking of the "B" variables as ranging over actual observations (past, present, and future) in both assumptions. But you're right: I definitely should have made that explicit.
David D. Friedman asks:
One of the commenters links to Overcoming Bias, but as of 11PM on Sep 28th, David's blog's time, no one has given the exact answer that I would have given. It's interesting that a question so basic has received so many answers.