The financial meltdown of 2008 has led to many looking for someone or something to blame. Some common culprits are - greed, sub-prime loans in the US, financial engineering of sub-prime loans, US investment banks and the list goes on.
In academic circles a heated debate is going on about the place of the Efficient Market Hypothesis, a core theory taught in finance courses around the world.
Professor Eugene Fama has been closely associated with the development of the efficient market hypothesis and has faced some fearce criticism. Professor Fama responds to one of those critics in his latest Fama/French Forum posting - Is market efficiency the Culprit?
Worth a read for those who are keenly interested in finance theory.