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The efficient market hypothesis would like to have a word with you.



While I agree with you a lot more than the parent comment this brings to mind one my my favorite quotes. Larry Summers on the EMH:

"THERE ARE IDIOTS. Look around."


As you perfectly expressed, "efficient market" is nothing more than an hypothesis. In fact, it has been proven essentially false repeatedly, theoretically by Kahneman among others, and in practive through many a crisis, bubble, etc.

Arguably "mainstream economics" could be nothing more than a religion, and a very dangerous one by its very high though undeserved power.


Theory and reality don't often match


In theory, they always do. But in reality...


I sometimes wonder if people who talk about the "efficient market hypothesis" understand what the third word in that phrase actually means....




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