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...with any official…for the purpose of influencing any legislative [action].” A person who spends over $2,000 on “lobbying” per year must register with OSE before he squawks. He also must file financial reports regularly and submit to random audits by OSE. That miscreant who fails to register faces fines worth up to $10,000. In this case, that miscreant was the Church...

Author: By Brian J. Bolduc | Title: Jesus Christ, Registered Lobbyist | 6/26/2009 | See Source »

...Markowitz devised a model for picking stocks that was, in Friedman's estimation, "identical" to his artillery-shell-fragmentation trade-off. And in the late 1950s, scholars at Chicago and the Massachusetts Institute of Technology became enamored of the idea that stock-market movements were, like many physical phenomena, random...

Author: /time Magazine | Title: The Myth Of the Rational Market | 6/22/2009 | See Source »

...strands of statistics and pro-market ideology came together in the mid-1960s. It was the great MIT economist Paul Samuelson who made the case mathematically that a rational market would be a random one. But Samuelson didn't share Friedman's political views, and he never claimed that actual markets met this ideal. It was at Chicago that a group of students and young faculty members influenced by Friedman's ideas began to make the case that the U.S. stock market, at least, was what they called "efficient...

Author: /time Magazine | Title: The Myth Of the Rational Market | 6/22/2009 | See Source »

...incentive to gather the information needed to make markets efficient. Another Samuelson student, Robert Shiller, documented that stock prices jumped around a lot more than corporate fundamentals did. Samuelson's nephew Lawrence Summers demonstrated that it was impossible (without a thousand years of data) to tell a rationally random market from an irrational...

Author: /time Magazine | Title: The Myth Of the Rational Market | 6/22/2009 | See Source »

...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...

Author: /time Magazine | Title: The Myth Of the Rational Market | 6/22/2009 | See Source »

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