Introduction: When Rationality Meets Reality Traditional economics tells us that consumers make rational decisions: weigh the costs and benefits, and choose the best outcome. If that were true, overdraft fees wouldn’t exist, credit card balances wouldn’t balloon, and Americans wouldn’t...
Bernie Madoff was supposed to be the last descendant of Charles Ponzi—or so I thought. I wasn’t wrong to think that, because Bernie’s Ponzi scheme was so expansive, so spread out, and drew celebrity-like attention with royal-wedding-style media coverage. I...
Abstract Middle-class Americans maintain a structurally unequal relationship with the country’s largest banks. This asymmetry stems from persistent financial literacy gaps, the complexity of modern banking products, behavioral design that nudges consumers into costlier outcomes, and the scale advantages enjoyed...
When most people think about emergency funds, they picture young families or working professionals setting aside cash for unexpected car repairs or job loss. But here’s the truth few talk about: retirees need emergency funds just as much — if...