Just found out (Facebook) I was not alone in finding something weird in economists not understanding dynamic vs static ruin problems.
It is a strange feeling to realize the answer to the question “Is it me or are they blind to something obvious?” is “no, it is not me”.
Murray Gell-Mann and colleague found the SAME point (though expressed in a more physical setting).

My literary treatment
https://dl.dropboxusercontent.com/u/50282823/rational.pdf

Gell-Mann and colleague:
http://phys.org/…/2016-02-exploring-gambles-reveals-foundat…