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Goodmans Presents: The U.S. Housing Market Crisis and the Efficient Capital Market Hypothesis

March-9-2012

Details

Goodmans LLP is pleased to be hosting the Inaugural Richard H. McLaren Professorship in Business Law Lecture

Date: Friday, March 9th, 2012

Schedule:
12:00 - 12:30 p.m - Registration and Lunch
12:30 - 1:30 p.m   - Lecture

Featuring as guest speaker
Dr. Reinier H. Kraakman
Ezra Ripley Thayer Professor of Law
Harvard Law School

Session Details:

Our understanding of the rationality of market prices for securities is pervasively important in business law. Prior to the U.S. housing bubble and the earlier dot com bubble, the Efficient Capital Market Hypothesis was itself the subject of a ideological bubble, where its refraction from theory to policy through the prism of politics inflated its claims far beyond what the original academic theory could support. With the bursting of this ideological bubble, however, we face an important task: guiding the concept back to its original scope without sacrificing its narrower but still important policy implications. The risk is that the swing from pre-crisis overstatement of the policy implications of the ECMH to the post-crisis rejection of its excesses will overshoot the point at which the pendulum should come to rest–that is, where the policy agenda follows from appropriately "sized" ECMH.