Apart from the understandable anxiety over lifestyle change (from limiting yourself to window shopping to foreclosing your home), I keep getting asked why we're seeing extreme reactions and herding mentality* regarding the financial crises. Real losses and risks aside, how much does psychology have to do with it?
The Seven Psychological Reasons Why We Are Freaking Out
1. Illusion of control makes everything tolerable. Problem is, we are plum out of illusions: Psychological literature shows that we can tolerate terrible situations...
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