Absolutely, except that instead the word "fuzzy thinking" I would use "cognitive framing." People use different cognitive frames - i.e. mental "filters" that focus on some bits of information while ignoring other, and group that information in a particular way - to different aspects of their lives, including financial decision making, cost/benefit analysis etc. The so called 'endowment effect' is one example of it - and this is probably what explains the phenomenon that you are describing.
Endowment effect is a tendency of assigning a higher value to goods being in one's possession than to the same goods being in other people's possession. Experimental studies show that this is not just bargaining tactic to win a better price, but it occurs even when people have nothing to gain or lose from the exchange.
>From a cognitive point of view, endowment effect is the application of
different frames to the same object - one that cognitively expands the
object's value and one that shrinks it. Thus the funds that one is "endowed
with" i.e. has them in his bank account seem to be more valuable than the
same amount borrowed from a credit card company. Or better yet, the
"endowed with" funds seem more cognitively valuable than borrowed funds
despite the greater time-value of the latter.
Wojtek