Exactly. And if you fervently believe this impossible-to-validate piece of doctrine, then the best public policy is to leave markets completely alone because they know what they’re doing. Anything the markets do is, ipso facto, “the most accurate,” effectively allowing this theory’s adherents to beg any questioning of economic performance, or, for that matter, their theory.

Ironically, the very fact that investment banks and hedge funds make so many billions of dollars every quarter by trading market inefficiencies suggests that this doctrine, which has been so adored by certain academics and public policy makers over the last few decades, holds little water in practice.

If you think economists, equity analysts and the like DO know something, than you would say, the market is not efficient. My guy knows what is coming.

So, the efficient market doesn’t say the market price IS right, it says that it is the most accurate current PERCEPTION of the right price. As evidence, it says that those who try to outguess the market usually use (which is true)…because economists don’t know much.

You know how, when you learn about the crazy things people in other times thought, like bloodletting or alchemy, you think to yourself, “they must have known this didn’t actually work.”? Yeah.