One thing to notice about the recent turmoil in the American stock markets is how quickly volatility can pop up out of seemingly nowhere. Let me back up: volatility, loosely defined, is an adjective applied to things which change quickly and often without warning. It has made its way into many advanced fields – in […]
In part one on Monday, I wrote about how credit cards can provide short-term liquidity where emergency funds would typically be recommended. In this article, I will write about how most “emergencies” people list as reasons for an emergency fund are not true emergencies and can be easily planned for (and anything that is above […]
As a genre of web sites, Personal Finance sites spend lots of time discussing and reviewing the best companies to enter into contracts with, and the best companies to do business with. There is also no shortage of reviews on companies which don’t live up to those same standards. One thing we don’t tend to touch? Companies which don’t want to do business with us.
Why would a rational person purchase insurance yet also play the lottery?
It’s a question that has puzzled Economists (and fake Economists, like 2/3 of the staff at DQYDJ) for a long time. Think about it, a lottery is the exact opposite of insurance. When it comes to insurance, a person purchases coverage to hedge against risks. In a lottery, sums are spent for a long-shot chance at the ‘risk’ of a payoff. People are risk-seeking when it comes to playing the lottery yet risk-averse when it comes to purchasing insurance. What gives?
DQYDJ: surprising our readers with yet another week where we submit articles to a carnival! Maybe we’ll keep it going this time.