Richard Thaler Quotes - Page 2

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• Is there a market for somebody selling a credit card that helps people pay down their balances? I think the question is yes. But it would have to be sold by a bank that's really willing to invest in being a trusted partner with its consumers, because they will make less money on each consumer.

  Richard Thaler

  Thinking, People, Balance

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

• It turns out, that men, when they're taking care of their business, they're not fully attending to the task at hand, but, I'm sure there's an evolutionary explanation for this, if you give them a target, they will aim.

  Richard Thaler

  Men, Hands, Giving

  "Big Think Interview". Big Think Interview, bigthink.com. June 19, 2009.

  4 Copy quote

• "Save more tomorrow" is a nudge to help people do what they know they want to do, which is save more, but they can't bring themselves to save more now. Just like many of us are planning to go on diets next month, or maybe in two months, certainly not tonight.

  Richard Thaler

  Two, People, Tonight

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

• In a typical 401k plan, when you first become eligible you get a big pile of forms and you're told, fill out these forms if you want to join. Tell us how much amount you've saved and how you want to invest the money. In, under automatic enrollment you get that same pile of forms but the top page says, if you don't fill out these forms, we're going to enroll you anyway and we're going to enroll you at this saving rate and in these investments.

  Richard Thaler

  Typical, Saving, Want

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  6 Copy quote

• Credit cards have been extremely profitable to banks. They're profitable not from the fees they collect from the retailers that use the credit cards, that pays the bills, but the real profits come from the interest payments and the charges to users that are unexpected.

  Richard Thaler

  Real, Use, Credit

  Source: bigthink.com

  7 Copy quote

• If rather than setting the minimum balance as the lowest possible amount, so we keep people in debt for as long as possible, we raise the minimum payment and encourage people to pay off their credit cards, we're going to make less money, but we're going to have costumers that are more solvent.

  Richard Thaler

  Long, People, Balance

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

• A company invites their employees to sign up for a plan where every time they get a raise, some part of that raise goes to increasing their contribution rate to the 401k plan. In the first company we convinced to adopt this plan, saving rates tripled.

  Richard Thaler

  Saving, Firsts, Employee

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

• Most people start claiming benefits within a year of when they become eligible, although benefits increase substantially if they wait.

  Richard Thaler

  Years, People, Waiting

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• When should we nudge and when should we shove, I think, it's a political judgment. Obviously in some situations we need shoves, we need laws. Fraud is against the law, murder is against the law, drunk-driving is against the law. We don't need just nudges.

  Richard Thaler

  Thinking, Law, Drunk

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

• The 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

  Writing, Should Have, Games

  Source: bigthink.com

  8 Copy quote

• he card companies will often, as a courtesy, honor that credit card, but hit you with a penalty. And you keep swiping your card for $3 at Starbucks for your latté, and you're getting hit with a $25 penalty because it's over your credit limit.

  Richard Thaler

  Over You, Honor, Cards

  Source: bigthink.com

  6 Copy quote

• One simple step firms can take is make sure that people that are getting paid a lot of money, say more than a million or two, that a big chunk of that money is deferred. That's going to change the whole ballgame.

  Richard Thaler

  Simple, Two, People

  Source: bigthink.com

  7 Copy quote

• LTCM lost money when Russia defaulted on a certain class of bonds, and then they had other investments like on the spread between two different kinds of shares of Royal Dutch Shell Oil Company. Now that seems completely unrelated to Russian bonds. But they were related because other hedge funds saw similar discrepancies and they were all making similar bets.

  Richard Thaler

  Russia, Class, Two

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  7 Copy quote

• Maybe you'll take the cash out. So a credit card company or a bank that goes into the business of saying we're going to be the broker, we're going to sell you a mortgage that you're going to be able to pay off, we're going to help you reduce your credit card debt, we're going to help you save for retirement, we're going to put you into mutual funds that have low fees rather than high fees.

  Richard Thaler

  Retirement, Credit, Debt

  Source: bigthink.com

  6 Copy quote

• Every American worker should be able to save for retirement via payroll deductions.

  Richard Thaler

  Retirement, Able, Should

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• The money has to be deferred with what they call "clawback," which means they can get it back if I lose it all. So that guy making ten million a year selling credit default swaps, if we're going to keep five million of it in escrow for ten years, and with the right to go back and get it, if he starts losing money, then we're going to give people the right incentives not too take so much risk.

  Richard Thaler

  Mean, Years, People

  Source: bigthink.com

  5 Copy quote

• It 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 Thaler

  Over You, Friendly, Use

  Source: bigthink.com

  4 Copy quote

• There's a second component of a good savings plan, which is something that a colleague of mine called Schlomo Benartzi and I developed many years ago, that we call "save more tomorrow."

  Richard Thaler

  Years, Saving, Tomorrow

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

  4 Copy quote

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