Market efficiency: good or bad?

Brian Atkins (
Thu, 01 Jul 1999 01:00:08 -0400

Are you saying the "market efficiency", helped by day traders, is a bad thing?

"Eliezer S. Yudkowsky" wrote:
> wrote:
> >
> > What, day trading isn't enough on-line gambiling?
> Oh, yes, and did I mention that letting people just bet, outright, on
> which way a stock will go, without actually having to buy anything and
> with no brokerage commission, would probably go a long way towards
> stabilizing the stock market? Which, if you ask me, has major
> volatility problems stemming from people out to make a fast buck.
> Remove the people who aren't actually investors, and the market will
> probably get a lot better.
> Even major institutions sometimes buy futures or stocks as a hedge,
> instead of as an investment. In a horse-race-like scenario, you could
> probably get much better odds on hedges.
> --
> Eliezer S. Yudkowsky
> Running on BeOS Typing in Dvorak Programming with Patterns
> Voting for Libertarians Heading for Singularity There Is A Better Way

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