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I understand that economists are essentially saying that the markets are efficient in the sense that public information is factored into the price of assets in
by jongjong 2y ago
I understand that economists are essentially saying that the markets are efficient in the sense that public information is factored into the price of assets in real time. My issue with this idea is that many human beliefs are founded on collective delusions. The market can stay irrational longer than you can stay solvent. So the distinction in the definitions of efficiency doesn't matter since public information and knowledge is highly flawed. What does it mean if incorrect assumptions are factored into the price? It doesn't make sense to call that efficient.
- TheOtherHobbes 2y agoIt doesn't make sense because it's a dogma used for political ends, not science. I suppose that's efficient in its own way, if you're one of the relatively few oligarchs and wannabes who benefit from it. To anyone rational and politically literate, these and other expedient mainstream superstitions are obvious nonsense.
- jongjong 2y agoI guess it's efficient in terms of ensuring that the prices of assets reflect the social conditioning and incentive structures laid out by the overarching legal and monetary system.