The assumption that everybody will figure out how much they have to save and then will just implement that plan is obviously preposterous.
Richard ThalerIt would be much more consumer friendly for them to beep you when you swipe your card that says, uh-oh you're over your limit, are you sure you want to use that?
Richard ThalerI think we also have learned the lesson that we have to have better incentive structures.
Richard ThalerThe same with the mortgage brokers that were selling people mortgages they couldn't afford. We shouldn't pay them on each mortgage they write. They should have what they call "skin in the game," where they've got to reimburse us if the guy who sold the mortgage defaults.
Richard Thaler