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How could a rational market push the share prices of these nascent companies to such heights?
(For those, who want to read up on the debate, try Justin Fox's book "The Myth of the Rational Market).
Unfortunately, the Federal Reserve's current ultralow interest rates make doomsday predications seem abstract, even to supposedly rational market players.
THE MYTH OF THE RATIONAL MARKET: A History of Risk, Reward, and Delusion on Wall Street.By Justin Fox.
But I'd be happy to bet on FiveThirtyEight relative to the price that Intrade offered on Mr. Obama on Tuesday, which was not characteristic of rational market behavior.
THERE is a strange piece in the Financial Times today which attacks (without naming) Justin Fox's book The Myth of the Rational Market.
Similar(22)
Rational, market-based rules could turn every American into an energy entrepreneur.
AES set out with American can-do optimism and late-90's Nasdaq-fueled enthusiasm to institute a rational, market-based system of power distribution in Georgia.
"When you cost in all the money you're going to invest, this is not the most rational market-driven mechanism," said Mr. Gamarra, director of the Latin American and Caribbean Center at Florida International University in Miami.
The Fed's action would—eventually deliver rapid inflation.But rational markets should anticipate this development.
Financial markets performed dismally – well-performing, "rational" markets do not lend to people who cannot or will not repay – and yet those running these markets were rewarded as if they were financial geniuses.
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