In line with the assignemnt for week 5 (write an essay where you examine the contribution of economists in changing financial practices) there is an article in the New York Times which criticize the ‘Efficient Market Hypothesis’.
Jeremy Grantham, a respected market strategist even states that: ‘the efficient market hypothesis is more or less directly responsible for the financial crisis.’
The article: http://www.nytimes.com/2009/06/06/business/06nocera.html
A friend of mine has just written his Master Thesis about family firms. His conclusion was that the financial management of family firms is very well and that the focus within these firms is more based on the long run.
A report by Barclays Wealth is also about family firms and is very positive about these kind of firms during an economic crisis. According to the report family firms could survive the economic crisis more easily, and will come out stronger, than businesses with other forms of corporate ownership.
So maybe that will be the future: (small) companies with people who know each other (family and maybe also friends).
The article: http://viewer.zmags.com/publication/71eb1ae7#/71eb1ae7/1