Via Matt Yglesias, we learn that "old GM," the collection of properties, contracts and liabilities abandoned by General Motors during its bankruptcy procedure, has a stock price of 77 cents a share and a market value of nearly $500 million. All this despite the fact that the company, the SEC and others have made extremely clear that the shares are worthless. Many of the people who own stock in the company are speculators, whether on present value or former short-seller, some are just confused. Empirical evidence aside, the hypothesis that markets are efficient continues to delight Eugene Fama. It still amazes me how little has been learned from the events of the past two years, and how conservatives and financial sector types insist that financial regulatory is an unnecessary intrusion.
-- Tim Fernholz
