TY - JOUR T1 - Why We All Held Our Breath When the Market Reopened JF - The Journal of Portfolio Management SP - 91 LP - 100 DO - 10.3905/jpm.2003.319887 VL - 29 IS - 3 AU - M. Chapman Findlay AU - Edward E. Williams AU - J.R. Thompson Y1 - 2003/04/30 UR - https://pm-research.com/content/29/3/91.abstract N2 - The distinction that Knight and Keynes made between risk and uncertainty has been all but eliminated from the mainstream finance literature over the past 35 years. Along with construction of the joint hypothesis of efficiency and equilibrium, this has resulted in a generally accepted theory of financial markets where risk is made benign (i.e., a mildly perturbed certainty) in order to achieve analytical tractability, and where acceptance of the neoclassical model is a test of faith. In fact, the authors argue, this theory is a massive edifice built on a pile of assumptions, presumptions, and ignored evidence, whose practical results range from the LTCM collapse to the dot-com bubble to Enron. ER -