The Myth of the Rational Market
by Justin Fox · first published 2008
5mentions
4recommended by
5HN commenters
2009–2025first – last mentioned
80% recommend20% neutral
Chronicling the rise and fall of the efficient market theory and the century-long making of the modern financial industry, Justin Fox's The Myth of the Rational Market is as much an intellectual whodunit as a cultural history of the perils and possibilities of risk. The book brings to life the people and ideas that forged modern finance and investing, from the formative days of Wall Street through the Great Depression and into the financial calamity of today. It's a tale that features professors who made and lost fortunes, battled fiercely over ideas, beat the house in blackjack, wrote best-se
Affiliate links. As an Amazon Associate I earn from qualifying purchases.
…Politics, and the Fight for a Better Future" by Paul Krugman (2020) "Zombie Economics: How Dead Ideas Still Walk Among Us" by John Quiggin (2010) Bonus: "Predictably Irrational" by Dan Ariely - 2008 "The Myth of the Rational Market" by Justin Fox - 2009 "The Black Swan" by Nassim Nicholas Taleb - 2007
on “Money lessons without money: The financial literacy fallacy” ↗I'd like to recommend the book: The Myth of the Rational Market by Justin Fox
on “G.E. Is Accused of $38B Fraud” ↗Just going to plug a book here that was an awesome read in my undergrad on that topic, and the history of quant finance over the 20th / early 21st centuries: https://byjustinfox.com/myth-of-the-rational-market/
on “Covid vaccine: First ‘milestone’ vaccine offers 90% protection” ↗…that it can be corrected. The financial industry has failed to absorb the lessons of the last 100 years concerning financial instruments. Taleb's "Black Swan" addresses this failure as does Fox's "The Myth of the Rational Market". Those executives/economists/technocrats unfamiliar with the ideas in those works should be removed forever from the industry. That means most of them. Why? Because they are ineducable - their entire…
on “U.S. Set to Sue a Dozen Big Banks Over Mortgages” ↗…believes that it won't work in exactly the case the author describes. A few arbitrageurs in a very misinformed crowd won't correct the price. Anyway, I know all this because I just finished the book The Myth of the Rational Market, by Justin Fox. It's the biography of the idea, from a tentative observation to dogma to just one tendency of the market among many. At least the way Justin Fox tells the story, the stronger versions…
on “Learning to Love Insider Trading” ↗