Irrational Consumer Behavior

Today I would like to rant about irrational consumers and the economists who love them.

1. I think that mortgage firms and borrowers are equally to blame for the crisis. On one hand, you have mortgage companies that makes money off of lending money to as many customers as possible. Then you have borrowers who want to pay as little as possible and who opted for adjustable rate mortgages or subprime loans which are very high risk. You have consumers that can barely pay and little or no penalites to the mortgage companies that finance these loans. Now you have state governments trying to intervene in real estate markets to reduce the number of foreclosures. Stupid consumers! Stop buying crap you can't afford! Stupid greedy mortgage firms, you should have done your due diligence! Dumb state governments, let them eat cake!

2. I don't understand consumer behavior at all you can eat breakfast buffet lines. I don't understand why people pile a ton of food on one plate. I mean they can theoretically go back for more. Why do consumers insist on piling eggs, bacon, pancakes, fruit, syrup, toast, oatmeal, more pancakes and crab legs (just kidding) all on one plate. Are they that lazy they can't walk up to the buffet to reload? I have a pet theory. They think if they don't get it now, it could be gone, so why don't they take it ASAP. They are inherently selfish and don't want to share the syrup. Thats my unscientific opinion.

If I got into the PHD Econ program, I planned to test my crazy ass theories in the experimental economics lab. But alas, perhaps it was not meant to be. Well, I will eventually apply to a higher ranked program so there! Hah!