Boom Bust Season 1 Episode 184 Christopher Whalen On the BofA Settlement and Dan Ariely On Psychology and Finance

Christopher Whalen, an investment bank and securities analyst, joins Boom Bust to share his thoughts on the Bank of America settlement. According to Whalen, there's more to the settlement than meets the eye, and he suggests that the bank hasn't done anything wrong. He goes on to discuss the lack of accountability in America's banking system and how it's contributing to the country's economic instability. Whalen argues that the problem is systemic and that it will require a radical overhaul of the system if we're ever to get our economy back on track.

In the second segment, Dan Ariely, a professor of psychology and behavioral economics, explains how psychology can help us understand finance. Ariely discusses the irrational decisions people make when it comes to money and how our emotions can get in the way of rational decision-making. He talks about the concept of "anchoring," which is where people latch onto a particular value and use it as a reference point for all other values. This can lead to irrational decisions when it comes to investing or purchasing items.

Ariely also discusses the role of trust in finance and how it's essential to the proper functioning of the economy. He outlines the ways in which the lack of trust in banks and financial institutions is contributing to the current economic crisis and offers suggestions for how we can build trust back into the system.

Finally, Ariely talks about the importance of financial education and how it can help people make better decisions when it comes to their money. He suggests that we need to start teaching finance in schools and that we need to do a better job of educating people about the risks and rewards associated with different types of investments.

Overall, this episode of Boom Bust offers a thoughtful and insightful discussion on two critical topics in finance: the role of banks in the economy and the psychology of finance. Whalen and Ariely offer compelling arguments and suggestions for how we can address the issues facing our financial system and build a more stable and sustainable economy.