Introduction: The Bank’s $35 Coffee You buy a $3 coffee on your debit card, but your account is a little short. Instead of declining the transaction, your bank covers it—and charges you $35. Suddenly, that latte isn’t a small indulgence....
Introduction: When Rationality Meets Reality Traditional economics tells us that consumers make rational decisions: weigh the costs and benefits, and choose the best outcome. If that were true, overdraft fees wouldn’t exist, credit card balances wouldn’t balloon, and Americans wouldn’t...
Bernie Madoff was supposed to be the last descendant of Charles Ponzi—or so I thought. I wasn’t wrong to think that, because Bernie’s Ponzi scheme was so expansive, so spread out, and drew celebrity-like attention with royal-wedding-style media coverage. I...
Abstract Middle-class Americans maintain a structurally unequal relationship with the country’s largest banks. This asymmetry stems from persistent financial literacy gaps, the complexity of modern banking products, behavioral design that nudges consumers into costlier outcomes, and the scale advantages enjoyed...