7 ms·
What does the EMH have to do with the financial crisis?
by bobcostas55 12y ago
What does the EMH have to do with the financial crisis?
- ArkyBeagle 12y agoChairman Greenspan thought that banks would behave rationally, and that is a portion in EMH theory.
- the_why_of_y 12y agoEMH claims that marked prices always reflect reality, so the housing bubble of 2000-2007 (with house prices rising at twice the rate as rents) whose bursting caused the financial crisis ought to be impossible.