Efficient Market Hypothesis Disproved!

Efficient markets are often explained with a joke about an economist walking by a $100 bill. His companion exclaims, “Look, there’s a $100 bill on the sidewalk!” Without stopping the economist responds, “That’s impossible; if it were really there somebody would have already picked it up.”

So here’s a picture of a $100 bill my wife found folded on the sidewalk outside a parking garage. She picked it up and looked around to find its owner. Seeing nobody, she concluded it must be fake. But she brought it home thinking I would enjoy figuring out what’s wrong with it.

Well, it passes every unclassified test for authenticity. Perhaps God knew that I needed a reminder of how inefficient the real world can be.

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