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The Efficient Market Theory Is Long Dead (And Central Bankers Are Just Realizing It)
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden on 02/19/2016 11:46
The efficient market theory is long dead, according to Bloomberg’s Richard Breslow.
It was a brilliant academic construct. It fit the needs of those who wanted to explain markets to freshmen, make econometric models or make money from the knowledge that it wasn’t reality. An unfortunate problem arose, however, from how the counter-argument was framed. If markets weren’t efficient they must be irrational or biased. The truth is something very much in-between.
Recognizing that there is mostly gray rather than the polar opposites black and white is even more vital in a world where exogenous shocking (including central banks) and systemic distortions (computer algos) have made if-then statements decidedly precarious.
The post The Efficient Market Theory Is Long Dead (And Central Bankers Are Just Realizing It) appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/19/the-efficient-market-theory-is-long-dead-and-central-bankers-are-just-realizing-it-2/
