1 of 1 people found the following review helpful
Prediction or Chance?,
This review is from: The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street (Paperback)
I would like to think that Economists have progressed from the strictly econometics and ideological models they used in the time I studied economics in the 1980s. Fox reminds us that the fundamental premise of rational markets has never been a reality. He uses a combination of 20th Century economists, Friedman, Markowitz, Fischer et al and contrasts with the story of markets run amok, greed, and sheer inability of anyone to control the markets in any rational preference. A contiual battle between chance and prediction. Between theory and empiricism.
Unfortunately if you read the contemporary ideological tracts in both the mainstream and "alternative media" there is still a basic assumption that free markets can actually be "free" if we let them - and actually be predicted. Fox is saying is that has never been the case - or at least just when someone thinks markets are predictable a body of evidence, or a shattering event crushes maxims. Very good Intelligent, but wont put you sleep like your econometrics lecturer frequently did....!
Could use a few simple math equations from time to time... but good nonetheless.