Tumblr Icon RSS Icon  No EMH Believers in a Foxhole  By Matthew
Yglesias on September 23, 2009 at 1:28 pm  "No EMH Believers in
a Foxhole"   google plus icon  As mentioned earlier, we spoke
with some German investment bankers yesterday. One group of them
mounted a spirited and somewhat convincing defense of their
profession’s behavior during the bubble years that I thought was
interesting. Basically they were saying we should blame the
clients. “We give the customer what he asks for” they say, and
(someone sarcastically) maybe “more regulation is needed on the
investor side” rather than on the bankers. They say that after
the crisis hit, people got very conservative but already
“clients are coming back and asking for emerging market bonds
and hedge funds. Banking is a customer service industry that
like any customer service industry is grounded in human nature
and “human nature is driven by greed and fear.”  This is
plausible stuff I think. But it’s also strikingly far afield
from the Efficient Markets Hypoth