market efficiency---How good the economy runs on information available. The knowledge of market participants is supposedly consistent to all other market participants when the market is efficient. The efficient market hypothesis is that all capital/money/stocks are priced exactly right to capture the “true” nature of investments.
Consider a world where embargoed information is floating around in dark pools, places where identity is hidden and large amounts of capital are shifted around at the speed of light so as not to cause price anomalies in the markets. This a wee bit disconcerting to the geek who considers the main problem with the new global economy to be an asymmetric information driven barrier to aggregate demand.
The lowering of the global wages of the crew over the long term, and the types of financial engineering designed to grow and pin debt on the workers and sovereigns in order to accommodate it all, constrains the realaggregate demand from surfacing into the economy. This is how the old pirates sink all the boats, their own included…not very efficient! Hiding the fruits of the globe’s labour from previous and current periods (capital) in holes on the beach instead of reinvesting it in better scalable things that the workers physically want, need, can afford to pay cash for, and are willing to jump right in to make, isn't helping. The globe’s economic engine is not running very efficient right now in any sense of the word. Could it be just one cloud of information gathering out there right now that will yield market efficiency? 7/22/14---a new sailor