Modern Finance Theory - Traditional Economic Thinking....

"Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened".

~ Winston S. Churchill

We don't have a Twenty First Century Financial System...What we have is a system that clings to 19th century Thinking, Combined with 20th century institutions, juiced with 21 century technology.....

The efficient-market hypothesis is a myth born on nineteenth-century theories of equilibrium and Bachelier's random walk. Although Traditional market efficiency may not be a very meaningful concept, financial markets are highly effective evolutionary systems. Markets are the best Social Technology devised yet for integrating the views of large numbers of people to put prices on complex assets, and to allocate capital.