Why It's So Dumb to Lend Money to a Friend

Psychologists have finally figured out why Shakespeare was so right with that famous line from "Hamlet": "Neither a borrower, nor a lender be; For loan oft loses both itself and friend." When you borrow money from a friend or sibling or a co-worker, you enter a trust agreement that is a likely to be violated -- because we humans tend to rewrite our memories in a self-serving way. Psychologists George Loewenstein of Carnegie Mellon University and Linda Dezso of the University of Vienna put a...Full Story
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