Comments by "J Hutt" (@jhutt8002) on "5 Ways People Are Dumb With Money" video.

  1. Endowment isn't irrational. I think it boils down to one effect economists always tend to downplay or miss completely: That most people have very limited money supply. So buying and selling are not the same or comparable transactions. Unlike money, most items are non-fungible, and less liquid as well. If I own 1000 eur guitar and I play guitar, it makes no sense to me to sell it, if I need the guitar more than I need the money. However if I don't already own the guitar, I probably can't afford to buy 1000 eur guitar without saving for time, which is lost practice time playing Or if I own valuable item that is more likely to go up than down, it makes no sense for me to sell it, unless I have something better to invest in. Then again, it makes no sense for me to buy it either, if I don't have excess money to spend on it. If taking loan, the interest is sure, but rising value of said item is not.
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  2. I think you're underestimating people with Charizard card example: In first scenario, you get the card free. It's very unlikely to lose value, but has plenty of room to go up. If you don't need the money, it is just the same to hold it. Whereas not many of us can afford to buy such card just as investment, and are unwilling to take the risk price doesn't go up. So example doesn't work.
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