There is a fascinating interview with Eugene Fama in The New Yorker magazine. The article is titled Rational Irrationality by John Cassidy.
Eugene Fama is a Professor of Finance at the University of Chicago Booth School of Business. Fama is known as the father of The Efficient Markets Hypothesis, which is a theory from finance that says that markets are efficient and prices on assets like stocks, bonds and houses reflect all available information.
While once widely accepted, the Efficient Markets Hypothesis (EMH) has come under a lot of criticism in recent years, especially since the credit crisis in 2008. Many point to bubbles in the stock market and housing market as causing the crisis. But according to EMH, bubbles can not exist. In the interview, Professor Fama gives his views on EMH and bubbles.
Read the complete Eugene Fama interview here
