“ One look at this chart should be sufficient to understand why the Great Crash of 1929 was both great, and a major cause of the Great Depression which followed it, and why levered speculation, rather than rational calculation, dominates the behaviour of asset markets.”
“ Finance, and banking, and macroeconomics, are therefore integrated topics: they cannot be treated as separate domains, as Neoclassical treats them. My focus in this book is on how macroeconomics and the theory of banking need to be overhauled, and a similar overhaul is needed of finance theory.”
“ I won't attempt that here, but fortunately, that process has been started by a group of mathematicians in the London Mathematical Laboratory. They are developing what they call "Ergodicity Economics" to replace the existing theory of finance.”
“ Sharpe continued with a half-hearted defence of these manifestly false assumptions, using a distorted rendition of Friedman's methodological claim that a theory cannot be tested by its assumptions (Friedman 1953):
.. However, since the proper test of a theory is not the realism of its assumptions but the acceptability of its implications,..”
really, wrap your heads around mainstream economics dept. They count themselves scientific