Two things I love about this, firstly I love Chicagoans, and secondly (sadly) I love PBR, when I was on holiday in Florida this year I brought a case to a BBQ and instantly made friends (unknowingly it was being hosted by a load of cheese-heads!). Not often can you obtain an accolade for such poor taste in refreshment!
Great video for seeing the difference between something that causes movement on the demand curve versus a move in the demand curve.
Legendary Behavioral Economist Dan Ariely presents a piece about trade off’s between instant gratification versus long term gratification, reward substitution, cheating, trust/revenge, global warming, executive pay and many other fascinating topics. This video is fascinating and for me is a real insight into the psychology behind economics that is so often over looked in classical economics. This is explained in simple terms that we can all understand and relate to, hope you enjoy!
I had an interesting conversation with Frank Pallotta of Loan Value Group in New Jersey earlier today. Loan Value Group is an organisation that was set up to help avoid foreclosures, they use the expertise of behavioural economists from Wharton, mortgage finance experts, mortgage advisers, and consumer marketing experts, to work with lenders at risk of strategic default and likely default.
There are really only two classifications of borrowers in difficulty, those who can’t pay and those who won’t pay – Loan Value Group can both identify and work with either cohort.
We share a common view on principle reduction, Loan Value Group’s opinion is that ‘blind principle reduction’ is very negative, it addresses the consumers balance sheet, but from a working point of view for every other stakeholder its a mess. And if people are willing to lie for a 0.5 to 1% – reduction in rate then imagine the incentive if there was 10k or more in principle reduction? Therefore, we need solutions that don’t disadvantage the …
This is a fascinating clip about a concept I am a fan of – that of the emotions of investing, and how we make decisions – only did a post on it yesterday! The full video is available here if you want to check it out (c. 1hr long).
We took to the streets to talk to people about their thoughts and feelings on the Irish economy and the government. The opinions were varied and colourful, we hope you enjoy this vlog.
