The Amazing Handy-dandy Efficient Market Theory
So what if the efficient market theory
didn't really efficiently predict what would inefficiently happen in the markets. ...
Of course the problem with academic theories is how they're interpreted
by real live executives and policymakers and implemented
by real live executives and policymakers. ... Alan Greenspan believed in some form of a laissez-faire/Randian/efficient-market theory -- and he played a role in driving the economy into the ground and costing taxpayers trillions of dollars. So where does that leave Efficient Market Theory? As an 'acadmenic hypothesis' that should never have been tried in the real world?
Such theorists remind me of Ronald Reagan's famous Pony in the Dung Heap story
. They remain supremely confident in their theories as long they can rationalize them back into the safe confines of academia.