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

[Damien Broderick]

At 06:06 PM 1/29/2009 +0100, Stefano Vaj wrote:

<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 "efficiency" is supposedly assured by the market mechanisms
>themselves.

Isn't the idea not that markets are perfect but that they work 
better, more often, than other available methods such as top-down 
regulation? A sort of wisdom-of-the-(relevant)-crowds proposition?

Damien Broderick