How Minsky got it right – his financial instability hypothesis and its relevance today.
Tag: fundamentalvalue
In mathematics, risk and uncertainty are different things. Models to predict asset prices treat the uncertainty of investment decisions as if they were quantifiable risks, and hence these models keep making disastrous predictions.
How the efficient market hypothesis justified deregulation of financial markets, leading the to the extreme chaos, inefficiency and instability we see in these markets today.
Why the Efficient Market Hypothesis is wrong, and therefore why markets always price financial assets incorrectly.
An explanation of the “Efficient Market Hypothesis” – the belief that markets will always price financial assets correctly.
What is the “fundamental value” of a financial asset?