Honesty Is A Complex And Tricky Thing,

You Can Think About Life As A Battle Between You And A Doughnut Shop. The Doughnut Shop Wants You To Eat Another Doughnut And Pay The Money, And You Want To Do It In The Short Term, But In The Long Term It's Not Good For You Either Financially Or From A Health Perspective.

Who Would You Trust Right Now? Which Bank Would You Trust? Which Investment Would You Trust? Do You Really Want To Put Your Money; Do You Want To Suffer More Of These Losses That We Just Had? You Know, These Volatility That We See Is Just Unexplainable By Any Rational Standards. Nobody Has Any Clue About How To Explain This, And Nobody Wants To Experience That. So, We Hold More Money Back, We Don't Necessarily Want To Invest In The Market And By Default, People Are Saving More.

It Is True That From A Behavioral Economics Perspective We Are Fallible, Easily Confused, Not That Smart, And Often Irrational. We Are More Like Homer Simpson Than Superman. So From This Perspective It Is Rather Depressing. But At The Same Time There Is Also A Silver Lining. There Are Free Lunches!

Scaling Down Individually Is Very Hard. Imagine That If You Go To A Place Where Everybody Is Dressed Nicely, And You Are The Only One Who Doesn't Dress Nicely. Everybody Goes On Vacations To A Great Place And You Go To The Jersey Shore. It's Very Hard To Do These Things Without An Organized Mechanism, But It Looks To Me Like There Might Be Some Organized Mechanisms.

We Are All Far Less Rational In Our Decision-making Than Standard Economic Theory Assumes. Our Irrational Behaviors Are Neither Random Nor Senseless: They Are Systematic And Predictable. We All Make The Same Types Of Mistakes Over And Over, Because Of The Basic Wiring Of Our Brains.