Efficient Market Hypothesis, eh?
The proponents of this hypothesis posit that all participants to the market are perfectly rational and that they all have enough pertinent information about what is going on as to be able to reach reasonable business decisions.
Now consider this: ‘ten percent of the egg producers being wiped out results in a up to 85% hike in retail prices’.
Quite reasonably, don’t you think?
As for efficiency… maybe for the owners of the surviving ‘egg producers’…
The most devastating outbreak of bird flu on record has already killed 38.9 million birds, according to a report Friday in The Wall Street Journal, causing huge spikes in egg prices.
The vast majority of these dead birds–32 million–are egg-laying hens. That means that roughly 10% of the country’s egg producers have been wiped out by an epidemic about twice as worse as one that struck the chicken population back in the 1980s.
The bird flu outbreak is wrecking havoc on the market for eggs, as dramatically reduced supply has tripled the price of so-called “breaker eggs,” or those sold in liquid form to such companies as McDonalds. Wholesale egg prices are up about 85% at grocery stores in some parts of the country, the Journal reports.