How to ensure good public policy
It's 2nd Anniversary of The Carnival of the Vanities

paradoxes in Efficient Markets Hypothesis

Via Catallarchy, Stefan Karlsson points to some fundamental paradoxes in the Efficient Markets Hypothesis.
The advocates of EMH are like people who say that there can never be any bills or coins to be found on the street because if there had been any money on the street someone would have picked it up. Yet if someone has picked up the money then these people would have been contradicted since the people who have picked up the money would have done what the other people said was impossible. Thus, the assumptions underlying the conclusion that there can be no money on the street or no profit opportunities in financial markets are in itself in direct contradiction with the conclusions they are supposed to prove!

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