Disillusioned and doomspending

Summary

Episode Summary: "Disillusioned and Doomspending"

Marketplace Morning Report | May 26, 2026
Host: Nova Safo | Featured Guests: Ben Kumar, Rima Grace, Chelsea Fagan, Judd Kessler

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Main Theme

This episode explores two core topics:

1. Global Market Response to Middle East Tensions: Immediate reactions in oil and stock markets following new strikes in Iran amid sensitive ceasefire negotiations.
2. Doomspending: The growing trend where uncertainty about the future – especially economic insecurity among young adults – is leading people to spend impulsively, often as a coping mechanism.

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Key Discussion Points & Insights

1. Middle East Tensions and Market Uncertainty

• Strikes in Iran: The U.S. conducted what it called "self-defense" strikes in Iran, which Tehran called a violation of ceasefire.
• Uncertainty in Markets: Secretary of State Marco Rubio warns that negotiations to end the war could still take days.
• Market Mood:
  • Ben Kumar (Seven Investment Management):

    “You have to see ships start to transit through the strait without any tolls, without any fuss, without any transponders off. You need to see evidence that the supply chains are working before people will really start to believe that there is.” (02:49)

  • Investors are in “wait and see” mode; confidence relies on sustained stability and visible normalization in the Strait of Hormuz.
• Oil and Inflation:
  • European Union officials are signaling that even with quick resolution, oil and gas prices could stay high through next year.
  • Quote:

    "If the oil price were 50% lower in a year's time or 50% higher, I think it's really difficult to say right now. I don't know how they can say that with any confidence." - Ben Kumar (03:30)

2. Doomspending: What Is It & Why Is It Spiking?

• Introduction to Doomspending:

  • Marketplace’s Rima Grace profiles the “doomspending” phenomenon: a defense mechanism triggered by feeling hopeless about the financial future.
  • Definition:

    "That's the mentality of feeling hopeless about your financial future and spending more freely now than perhaps you should." - Rima Grace (05:46)

• Underlying Sentiments:

  • Chelsea Fagan (The Financial Diet) receives frequent questions expressing defeatism:

    “The most common question we get by far is like, why should I have a retirement account? No one's ever going to retire, whether that's for climate reasons or political reasons...becoming completely defeatist about it.” (06:09)

  • Economic anxieties among Gen Z are real:
    • 42% of Gen Z adults report living paycheck to paycheck (06:25).
    • Rising costs, stagnant job market, and debt add to feelings of uncertainty.

• Immediate Gratification (Present Bias):

  • Behavioral economists label the impulse to favor present enjoyment over future security as "present bias."

    “You might tell yourself, okay, next year I’m going to start saving for retirement … and instead of implementing that plan, I change my mind because now the future is the present.” - Judd Kessler (07:18)

  • Anxiety and hopelessness deepen this bias, leading to more impulsive spending.

• Manipulative Environments & Tools:

  • Frictionless spending tools like Buy Now, Pay Later lower barriers and encourage impulsive purchases.

    “Rather than getting angry at yourself for spending in a frivolous or not helpful way, get mad at all of the forces that are profiting off of the fact that you don’t feel good...” - Chelsea Fagan (08:10)

• The Role of Loneliness:

  • Reduced in-person connection leads to more phone-based socializing and more phone-based spending.

    “If your primary social sort of portal is your phone ... it’s completely natural that spending on things that are easily accessible to you … is going to be an alternative.” - Chelsea Fagan (08:28)

• Ways to Resist Doomspending:

  • Before making an impulsive purchase, pause and ask yourself what you’re seeking (relief, distraction, control), and find healthier ways to address it—especially through community and social connection (08:43).
  • Establishing a personal link to your “future self” (like looking at an aged photo) helps reinforce good financial habits (07:47).

3. Quick Headlines

• Ferrari’s First Electric Car:
  • Departing from its iconic design, Ferrari released an electric model to poor reviews; stock drops 7%.
  • Reviewer comment:

    “A mix between a Honda Accord and a Tesla.” (09:02)

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Notable Quotes & Memorable Moments

• “I am going to need to see the ink dry on this and ... see ships moving through the Strait of Hormuz ... before I really believe that this is going to stick.”
  — Ben Kumar (02:14)

• “No one's ever going to retire ... It's sort of that way of thinking, imagining there is no future and becoming completely defeatist about it.”
  — Chelsea Fagan (06:09)

• “But we so often feel like these smaller, often kind of self-defeating purchases are making us feel better … the vast majority of them are just not that great.”
  — Chelsea Fagan (06:44)

• “Show somebody an aged photograph of themselves and all of a sudden they'll start thinking about saving for retirement.”
  — Judd Kessler (07:47)

• “Rather than getting angry at yourself for spending in a frivolous or not helpful way, get mad at all of the forces that are profiting off of the fact that you don’t feel good ...”
  — Chelsea Fagan (08:10)

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Timestamps for Key Segments

| Timestamp | Segment | |---------------|--------------------------------------------------------------------------------------| | 01:29 | New strikes in Iran, Nova Safo introduces Ben Kumar | | 02:03 | Ben Kumar on market reaction & investor mindset | | 03:18 | E.U. prepares world for prolonged high energy prices | | 05:46 | Doomspending segment introduction – explanation & expert insights | | 06:09 | Chelsea Fagan describes reader/listener hopelessness | | 06:25 | Gen Z stats on living paycheck to paycheck; the allure of spending for quick relief | | 07:07 | Judd Kessler explains "present bias" and why it derails saving | | 07:47 | How to connect with your future self to encourage saving | | 08:10 | Buy Now, Pay Later & environmental influences on doomspending | | 08:22 | The link between loneliness and increased online shopping | | 09:02 | Ferrari’s electric car reveal & market reaction |

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Final Thoughts

This brisk episode spotlights how geopolitical and economic uncertainty—from international conflicts to inflation—seeps into personal finance psychology. Listeners learn that spending impulsively in anxious times is common yet often unhelpful. Instead, building a connection to your future self and seeking real connection in your community can help resist “doomspending,” an increasingly relevant concept in today's volatile world.

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Transcript

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[NovaSafa (Marketplace Host)]

New strikes in Iran. The same old uncertainty in markets for marketplace. I'm novasafo. Good morning. The US military carried out what it described as self defense strikes in Iran last night. Iran called it a violation of the ceasefire agreement and said it reserved the right to retaliate this as negotiators work toward a framework agreement to end the war. One that could take days longer, according to Secretary of State Marco Rubio. To understand how markets are absorbing all this, I'm joined by Ben Kumar, head of Equity strategy at Seven Investment Management in London. Ben, good morning.

[Ben Kumar (Equity Strategist)]

Good morning.

[NovaSafa (Marketplace Host)]

So there was some cautious optimism, I think it's fair to say, yesterday in global markets after President Trump suggested a framework agreement was near. How would you describe how global markets are reacting today?

[Ben Kumar (Equity Strategist)]

So when it comes to the negotiations, it's like all of these tiny sticking points. That is where you really start to see whether there is something happening. So I mean, I am going to need to see the ink dry on this and I'm going to need to see ships moving through the Strait of Hormuz like they used to for a considerable period of time before I really believe that this is going to stick.

[NovaSafa (Marketplace Host)]

And what are the moves today that we're seeing, whether it's in European stock indexes or the oil prices that help us understand about, I guess the wait and see attitude that investors are taking?

[Ben Kumar (Equity Strategist)]

What partly we've got the problem of public holidays. So the UK off yesterday, the US off yesterday. Europe open. So Europe had a good day yesterday and then is giving some of it back today. When I look at Brent crude today, I think we're still in wait and see mode. You have to see ships start to transit through the strait without any tolls, without any fuss, without any transponders, off. You need to see evidence that the supply chains are working before people will really start to believe that there is.

[NovaSafa (Marketplace Host)]

And European Union officials on your side of the world warning that even if the Strait of Hormuz opens maybe by the end of this week, perhaps people should expect oil and gas prices higher through next year.

[Ben Kumar (Equity Strategist)]

I think they're trying to prepare the world for higher inflation, which I do think you will see come through, particularly in food prices related to ammonia and fertilizer. Not going through the straight of Hormuz ahead of planting season. But honestly, if the oil price were 50% lower in a year's time or 50% higher, I think it's really difficult to say right now. I don't know how they can say that with any confidence.

[NovaSafa (Marketplace Host)]

Ben Kumar, head of equity strategy at seven Investment Management in London. Thank you so much for joining us.

[Ben Kumar (Equity Strategist)]

Thanks very much.

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[NovaSafa (Marketplace Host)]

you heard of doom spending? That's the mentality of feeling hopeless about your financial future and spending more freely now than perhaps you should. Marketplace's Rima Krase, host of this Is Uncomfortable, explains the impulse and what to do about it.

[Reema Grace (Marketplace Podcast Host)]

It comes down to feeling disillusioned with our economy. The at least that's what Chelsea Fagan, the co founder of the Financial Diet, hears from her readers and listeners.

[Chelsea Fagan (Financial Diet Co-founder)]

The most common question we get by far is like, why should I have a retirement account? No one's ever going to retire, whether that's for climate reasons or political reasons. It's sort of that way of thinking, imagining there is no future and becoming completely defeatist about it, defeatist about the

[Reema Grace (Marketplace Podcast Host)]

high cost of living, a cooling job market, the burden of student debt. In a new bank of America survey, 42% of Gen Z adults say they're living paycheck to paycheck. Fagan says that desperation can make spending money feel weirdly rational, like a small way to get relief or control.

[Chelsea Fagan (Financial Diet Co-founder)]

But we so often feel like these smaller, often kind of self defeating purchases are making us feel better or are a better use of our time while we're here. And I actually think that this, the vast majority of them are just not that great.

[Reema Grace (Marketplace Podcast Host)]

That pull toward the immediate, especially when the future feels shaky, is what behavioral economists call present bias, where you basically

[Judd Kessler (Economist)]

elevate the present, the spending you're able to do in the present over the future.

[Reema Grace (Marketplace Podcast Host)]

Judd Kessler, an economist at the Wharton Business School, says you might tell yourself, okay, next year I'm going to start

[Judd Kessler (Economist)]

saving for retirement and I get to the next year and instead of implementing that plan, I change my mind because now the the future is the present and all of a sudden the money I'm earning this year I want to spend on myself. And so that can lead to worse outcomes for folks over the long term.

[Reema Grace (Marketplace Podcast Host)]

And Kessler says that instinct can get stronger when people feel anxious or hopeless. But he says studies show that if you want to get people to start thinking more of their future selves, you

[Judd Kessler (Economist)]

have to make the future self and the present self like more connected. Show somebody an aged photograph of themselves and all of a sudden they're start they'll start thinking about saving for retirement.

[Reema Grace (Marketplace Podcast Host)]

But this inclination to doom spend is also about the environment we live in, says Chelsea Fagan, an environment that's constantly lowering the barriers to spending, especially with tools like Buy Now, Pay later that make transactions feel frictionless.

[Chelsea Fagan (Financial Diet Co-founder)]

Rather than getting angry at yourself for spending in a frivolous or not helpful way, get mad at all of the forces that are profiting off of the fact that you don't feel good for

[Reema Grace (Marketplace Podcast Host)]

whatever reason, fagan says. There's another thing that can feed doom spending loneliness.

[Chelsea Fagan (Financial Diet Co-founder)]

We are seeing each other less. We are having fewer connections. If your primary social sort of portal is your phone, I think that it's completely natural that spending on things that are easily accessible to you, often through your phone, is going to be an alternative.

[Reema Grace (Marketplace Podcast Host)]

Instead, Fagan says, before you impulsively spend, ask yourself what you're really looking for. Relief. Control. Distraction. Then find a way to meet that need somewhere else. With friends and your community. Anywhere that reminds you that you're not alone. I'm Maria Reis for Marketplace.

[NovaSafa (Marketplace Host)]

Ferrari has unveiled its first electric car, doing away with a distinctive Ferrari silhouette in favor of a new glass and aluminum look. The reviews? Not great. One analyst called it a mix between a Honda Accord and and a Tesla. The automakers Milan traded shares have tanked 7% this morning. I'm NovaSafa with a Marketplace Morning Report from APM American Public Media.

[Reema Grace (Marketplace Podcast Host)]

I'm Reema Grace, host of the weekly Marketplace podcast. This is uncomfortable. And this week on the show we're talking about doom spending. You know, that impulse to spend when the future feels uncertain, like maybe I'll never be able to retire or buy a home anyway, so why not book that vacation or buy that fancy gadget?

[Chelsea Fagan (Financial Diet Co-founder)]

When we ask ourselves, what's the point of saving? We're just gonna die or whatever? I think that's the wrong question. I think the more important thing to ask is, is spending that money even actually making you feel better?

[Reema Grace (Marketplace Podcast Host)]

Be sure to listen to this is Uncomfortable. Wherever you get your podcasts.