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Efficient Markets Theory

Alan Greenspan discovers human beings are flawed

Robert Teitelman | Posted 01.23.2014 | Business
Robert Teitelman

What is there to say about Alan Greenspan, who at 87 is out flogging his new book, "The Map and the Territory: Risk, Human Nature and the Future of Fo...

Random thoughts on rational decline

Robert Teitelman | Posted 01.23.2014 | Business
Robert Teitelman

This has been a rough few weeks for Rational Man. In fact, this has been a difficult decade or more for the concept, central to both the Enlightenment...

Brokers Rake in Record Profits No Matter What

Nancy K. Humphreys | Posted 09.16.2012 | Business
Nancy K. Humphreys

Americans got ripped off during the financial crisis. Right? Nope! That began decades earlier when financial wizards invented a myth called the "efficient market hypothesis" based on Burton Malkiel's Random Walk.

What the Stock Market is Telling Us

Michael Farr | Posted 07.03.2012 | Business
Michael Farr

The breakdown of S&P 500 returns by sector is once again telling us something. This time the breakdown is confirming what the incoming economic data over the past several weeks has been saying all along: global economic growth is slowing.

Should Facebook Be at $60?

Alex Frey | Posted 08.07.2012 | Business
Alex Frey

What effect did the NASDAQ's market "glitch" have on the bungled Facebook IPO? According to the academically popular efficient market hypothesis (EMH) developed by Nobel-prize winning economists, the answer is none. But that is probably wrong.

The Netflix Squeeze: Value Migrating Away From the Consumer

Howard Steven Friedman | Posted 09.13.2011 | Technology
Howard Steven Friedman

Netflix has a good business model and has been well-run in the past. Perhaps they will recognize that as their market gets competitive, they will need to offer more, not less, in order to be the most competitive.

Robert Shiller: Market Bubbles Part Of Human Psychology, Won't Be Eradicated | Robert Shiller | Posted 05.25.2011 | Business

When it comes to market bubbles and how they are created, very little, if anything, has changed. This is because human psychology has not changed. Mas...

The Bailout Crisis: Compensation Restrictions Are Not Just a Matter of Fairness

Jeff Madrick | Posted 05.25.2011 | Business
Jeff Madrick

Some may think these restrictions are just about getting even with the financial community. But this issue is not just about fairness. Compensation excess is at the heart of this crisis.