The Ascent of Money Part 1

I think that behavior and money intertwine almost always, and a persons behavior can greatly affect how they spend money. I think that a person who behaves more calmly will probably spend less money and less frivolously than somebody who doesn't. However, regardless of behavior, for a currency to have value people need to have trust in it. Trust in a currency is often based off of reason, which leads me to believe that money and behavior aren't always mutually exclusive. Investors in the stock or bonds markets research deeply before they make a heavy investment to give themselves a good shot of making money. For example, Nathan Rothschild always did research before he invested in bonds, but even still things didn't always work out. In both the Civil War and in the Napoleonic Wars he invested poorly in bonds.
Between a borrower and a lender, I think that more reason is normally required for this sort of transaction. A borrower has to make sure that they're getting a good rate, and know that they can pay their loan off in a reasonable amount of time. A lender has to see if the borrower has good credit, and look into their background to see if they have any outstanding loans. If a lender doesn't use reason and good judgement then it is likely they will not be getting their loan back any time soon. However, in both cases the borrower or lender can go with their gut on a loan or investment, but should be aware of the risks that come with that.