[ExI] Greed + Incompetence + A Belief in Market Efficiency = Disaster

[Stefano Vaj]

On Thu, Jan 29, 2009 at 4:33 PM, BillK <pharos at gmail.com> wrote:
> GMO's quarterly update, by Jeremy Grantham has an enjoyable rant
> blaming believers in the efficient market theory for the economy
> crashing.
> <http://www.gmo.com/websitecontent/JGLetter_4Q08.pdf>

The prob is that within classic economic theory the market player
cannot really be "incompetent" as a whole, since they are the ultimate
judges of where their preference lie at any given moment, and since
their "efficience" is supposedly assured by the market mechanisms
themselves.

So, I suppose that such article is not going to change much in the
views of those adhering to such theory.

-- 
Stefano Vaj