This is Your Brain on Credit

As so often, the Sage of Omaha put it best: “Nothing sedates rationality like large doses of effortless money.” These days, it is hard to disagree. Warren Buffett’s warning now looks less like a mere aphorism and more like a sharp summary of the latest research in behavioral economics. Our stone-age brains just don’t seem to be able to cope with digital-age credit products…

Continued at

Tim Harford’s blog

This blog is no longer updated but it remains open as an archive.

Tim, also known as the Undercover Economist, writes about the economics of everyday life.