Jeremy Siegel - Efficient Market Theory and the Recent Financial Crisis

The Inaugural Conference @ King's, Institute for New Economic Thinking, Session 2:
Has the Efficient Market Hypothesis Led to the Crisis? Collapsed with The Crisis?

[@Robis9267]

Watching this in 2024 - he was absolutely right.

[@hl3641]

Man spoke the truth got boycotted by all the big financial firms… lol

[@cleobabie]

Love the analogy he gave in the end!

[@reverenceforall]

@Zurrian Unfortunately the pain will only be felt by the bottom 40% of population and not by those who deserve it.

[@gmshadowtraders]

This was better than I thought it would be. He's basically saying that economic cycle variability somehow got dampened since 1982. A great moderation led to increased leverage and a reduction in risk premiums. Then all of a sudden, bang. It crashed. "It's going to be much more severe". Indeed. So we just cut down on leverage? Is that the answer to the mispricing of risk and the build up of prices for real estate? I'm afraid not. Something very big has been left out of the theory on efficient markets. And it is this which led to markets failing to adjust to the right level of economic reality.

[@worldisgoingcrazy851]

I remember saying hello to him at Wharton during the early 80s. Lasted 3 seconds!

[@FAAK27]

WOW thank you for uploading

[@mcmxli-by1tj]

The market was telling the CEOs who refused to listen? In that case, the market was "efficient" but the efficiency was not transmitted to the market floor thanks to human error. isn't that a problem for efficient markets theory?

[@jordanporter327]

Record-low interest rates sound familiar.

[@thedustykeratometer8570]

I wish I had attended Wharton and studied under Dr. Siegel. He knows what’s going on explains everything so clearly.

[@hl3641]

Lol… no. Wharton only takes super rich Ch!nese kids.. u ain’t rich nor Ch!nese … all us universities r sucking on Ch!na for years for international student revenues, poor kids and American0 r excluded

[@hl3641]

Lol… no. Wharton only takes super rich Ch!nese kids.. u ain’t rich nor Ch!nese … all us universities r sucking on Ch!na for years for international student revenues, poor kids and American0 r excluded

[@skurwialydziad]

if he thinks that greenspan was wrong... and was he's wrong in the end... does it make greenspan right ? I LOOK AT ECONOMIC DATA AALLLL THE TIME!!!! ffs. end is near.

[@eduardouriegas1775]

I thought he was mexican ex president Felipe Calderón

[@lorenzmuller3542]

lol

[@WilsonBolognesi]

bla bla bla...... where was he?

[@ianbloom4934]

It's a trap.

[@waggawaggaful]

Men can't play God. Get over it. The only truly efficient market is a free one. It's that simple. These guys make finance way more complex than it is or needs to be. But then again, I guess life would be pretty boring without all of these interesting hypothetical speculations to contemplate and the inane/insane attempts at attaining perfect knowledge in order to achieve 100% accuracy in prediction. It's all pretty entertaining and it gives them something to do with their free time, I guess. But you're never going to be able to reach perfect predictability, ever. You'll just get exponentially closer to it, forever. And that is how it should be.

[@12artman]

In 1982 I was hearing the same stuff, an unregulated market and I saw this coming then. The fanatical, uninformed and illogical rhetoric you express is beyond ridiculous. Say what you will, I won't respond to anyone so foolish.