On Dec 11, 2006, at 6:10 PM, Julio Huato wrote:
> Doug wrote:
>
>> Gotta love Alan Greenspan's use of language. For example,
>> "sophisticated" in this excerpt from a Reuters story: "Greenspan said
>> markets were so sophisticated it was very difficult to forecast the
>> short term direction of the dollar." He could have easily said
>> "random" or "irrational," but "sophisticated" sounds so much better,
>> especially when you're billing at his rates for speeches.
>
> Maybe by "sophisticated" he meant that the markets were "rational," in
> the sense that tomorrow's prices are best predicted by today's
> prices...
But I thought that efficient market theory held that prices were not predictable from past prices....