Re: Greenspan plays with language
On Dec 11, 2006, at 6:10 PM, Julio Huato wrote:
Doug wrote:
Gotta love Alan Greenspan’s use of language. For example, “sophisticated” in this excerpt from a Reuters story: “Greenspan said markets were so sophisticated it was very difficult to forecast the short term direction of the dollar.” He could have easily said “random” or “irrational,” but “sophisticated” sounds so much better, especially when you’re billing at his rates for speeches.
Maybe by “sophisticated” he meant that the markets were “rational,” in the sense that tomorrow’s prices are best predicted by today’s prices…
But I thought that efficient market theory held that prices were not
predictable from past prices….