Rational Markets?

People talk about efficient markets and how information and decision making run markets. I have done some reading recently and have done some thinking. Do we really have efficient markets? How do we call markets efficient when they fall victim to wild swings in asset prices and create bubbles that aren't really there? Well---- in short, we are humans and we do not react rationally all the time. Proper information + rational decision making= Efficient markets. This thought process is simple on the surface but requires some deeper thought in the long run. We as humans fail to make rational decisions all the time and our markets suffer. If you want to learn more about this idea you can read " Animal Spirits: How Human Psychology Drives the Economy and Why it Matter for Global Capitalism." This book mentions various reason why we do not live in a world of rational markets. There are arguments against this idea, but that is why we call this the Great Economic Debate!