Eugene Fama
Eugene Fama
Eugene Francis "Gene" Famais an American economist and Nobel laureate in Economics, often referred to as "The Father of Finance", best known for his empirical work on portfolio theory, asset pricing and stock market behaviour...
NationalityAmerican
ProfessionEconomist
Date of Birth14 February 1939
CountryUnited States of America
believe
I don't believe anyone wants to hear what I have to say.
indication people unless
People don't walk away from their homes unless they can't make the payments. That's an indication that we are in a recession.
argue extreme people views
I'm an extreme libertarian, but I realize we're in a democracy, and in a democracy, people can have views of all stripes, and there's no reason to argue about it.
bubble
I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning.
debt disappear economies function government likely might
Economies typically do not function well in hyperinflation. The real value of government debt might disappear, but the economy is likely to disappear with it.
caused debates economics explaining good great swings
Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic activity.
bigger busted federal government order pay pension provide state whether
State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don't know is whether that order will be enforced. And ultimately, the busted state is going to be looking to the federal government for a bailout. Think Greece, but on a much bigger scale.
actual efficient estimate good intrinsic point price time
In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value.
cover despite expected good managers means passive performers produce return skill sufficient top
After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means that going forward, and despite extraordinary past returns, even the top performers are expected to be only as good as a low-cost passive index fund. The other 97% can be expected to do worse.
half people prices saying time turn
People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to be wrong, we ignore them. They are typically right and wrong about half the time.