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THE MYTH OF THE RATIONAL MARKET

Justin Fox

 

Subtitle: A History of Risk, Reward, and Delusion on Wall Street, Harper Collins, NYC, 2009, 382 pgs., incex, notes, cast of characters

 
 

Reviewer's comments - Of course these chapter titles 'random walk - are meant to bug Burton Malkiel, the preeminent prophet of the 'rational market'. This is an excellent critical appraisal of the havoc academic economists have made of investing in the stock market.

 
 

inroduction: It had been working so exceptinally well

 
 

Early Days
Chapter 1 - Irving Fischer Loses his Briefcase, and then his Fortune

 
 

Chapter 2 - A Random Walk From Fred Macaullay to Holbrook Working

 
 

The Rise of the Rational Market
Chapter 3 - Harry Markowitz Brings Statistical Man to the Stock Market

 
 

Chapter 4 - A Random Walk From Paul Samuelson to Paul Samuelson

 
 

Chapter 5 - Modigliani and Miller Arrive at Simplfying Assumption

 
 

Chapter 6 - Gene Fama makes the Best Proposition in Economics

 
 

The Conquest of Wall Street
Chapter 7 - Jack Bogle Takes on the Performance Cult (and wins)

 
 

Chapter 8 - Fischer Black Chooses to Focus on the Probable

 
 

Chapter 9 - Michael Jensen Gets Corporations to Obey the Market

 
 

The Challenge
Chapter 10 - Dick Thaler Gives Economic Man a Personality

 
 

Chapter 11 - Bob Shiller Points out the Most Remarkable Error

 
 

Chaper 12 - Beating the Market With Warren Buffett and Ed Thorp

 
 

Chapter 13 - Alan Greenspan Stops a Random Plunge Down Wall Street

 
 

The Fall
Chapter 14 - Andrei Shleifer Moves Bdyond Rabbi Economics

 
 

Chaper15 - Mike Jensen Changes His Mind About the Corporation

 
 

Chapter 16 - Gene Fama and Dick Thaler Knock Each Oher Out

 
 

Epilogue: The Anatomy of a Financial Crisis

 
 

Cast of Characters

 

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