[lbo-talk] "Bedlamite economics" and the EMH

Eubulides paraconsistent at comcast.net
Thu Nov 12 09:56:42 PST 2009


On Thu, Nov 12, 2009 at 9:17 AM, c b <cb31450 at gmail.com> wrote:


> “I continue to believe the EMH is a solid view of the world for almost
> all practical purposes. But it's pretty clear I'm in the minority. If
> the EMH took over the investment world, I missed it.”
> http://www.dimensional.com/famafrench/2009/11/qa-is-market-efficiency-the-culprit.html
>
> Ted
>
> ^^^^^^^
>
> CB: Certainly  interesting if "most investing is done by active
> managers who don't believe markets are efficient."
>
> Why does the person quoted above beliieve the EMH is a solid view of
> the world , then ?

=================

Because markets would be efficient if all traders in the market internalized/operationalized the prescriptions of the emh. The "performativity of markets", self-fulfilling belief dynamics and all that. Those interested in more might want to have a look at Donald MacKenzie's work.

<http://www.sps.ed.ac.uk/staff/sociology/mackenzie_donald>

The thorny problem of "the" traverse does not seem to be on EF's radar screen in the interview.

Ian



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