6.11.02

HARVEY PITT FALLOUT. Lengthy Brad DeLong post on what may yet come. Transparency matters. The short form is this: Competitive markets allocate resources efficiently. In order for any competitive market, including capital markets, to allocate resources efficiently, the relevant information must be quickly discovered and quickly acted upon. That's Professor DeLong's "But for this to work, the market has to know what it is doing."

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