If the markets are efficient, does it mean that you
can buy at any time, using any methodsand you will still make the same
returns as somebody else whois smarter ?
Koushik
What is predatory lending ? What are sub-prime rate
loans ? What is the problem with lenders lending at low rates ?
Koushik
Has anybody seen any work done on negative wealth effect ie effect on
consumption as wealth/networth goes down? Do positive and negative changes
in wealth have the same magnitude effect on consumption ? Do these effects
kick in with same lag i.e. does a drop in wealth lead to a lower
consumption,
Should markets be priced assuming that nothing will go wrong (random
shocks) or should markets be priced assuming that something will go wrong ?
If the answer is the latter, then shouldn't some margin of error provided
for the consequences of these random shocks ?
Are these events truly random.
