Word: marketed
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Dates: during 2000-2009
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...stock-market crash gave Shiller and Summers all the ammunition they needed. "If anyone did seriously believe that price movements are determined by changes in information about economic fundamentals," Summers said just after the crash, "they've got to be disabused of that notion by Monday's 500-point movement." The crash also demonstrated that prices didn't follow the statistical model of a random walk--if they did, a 20% one-day market drop like that of 1987 should happen only once in billions upon billions of years...
Subsequent years saw more challenges to the core assumptions of the rational market. Even Fama retested his 1969 efficient-market hypothesis and found it wanting. But the strong performance of the U.S. stock market and economy tended to silence doubts about the wisdom of the market both on campus and where it really mattered--in Washington and on Wall Street. Shiller warned repeatedly of irrational exuberance in stocks in the late 1990s and in housing in the early 2000s. He was largely ignored both times--until he turned out to be right. Unwillingness to countenance the possibility that market prices...
...issue isn't whether financial markets are useful--they are--or whether the prices of stocks or bonds or collateralized debt obligations convey information--they do. There's also much to be said for the insight at the heart of efficient-market theory: markets are hard to outsmart. But when we give up second-guessing the market, we suspend our judgment. And without participants' exercising judgment--applying research, heeding a broker's opinion--markets stand no chance of ever getting prices right...
Based on Fox's book The Myth of the Rational Market, published this month by HarperBusiness
...that, Bernstein became an in-demand speaker, an industry wise man (one writer likened him to Yoda) and the foremost interpreter of the quantitative approach that came to dominate Wall Street. But he was never doctrinaire. When I sought his blessing for a book on the fall of the market philosophy whose rise he had sketched in Capital Ideas, he was enthusiastic--and even contributed a blurb for the back cover. When he died on June 5 at age 90, he was working on another book about risk. When that was done, he planned to finally get to work...