The fear shock
Posted: Tuesday, November 25, 2008 4:15 PM by Daily Nightly Editor
By Carl Sears, NBC News producer, Washington
Is there reason to panic or panic without reason? When the stock market dives, waves of sell orders at a loss pour in only to have stocks bounce back on the mere name of a Treasury Secretary nominee. Everyone wants to know “where is the bottom” and are acting like there isn't one. It's called the psychology of fear. Faced with unexpected crisis, people are scared. Fear begins with a sense of danger stoked by imaginary crises that can freeze reason and unleash panic.
It doesn't have to be economic fear...
October: At least 168 pilgrims died when a false rumor of a bomb caused thousands to stampede at a Hindu temple in India.
September: Doomsday fears swept the globe and spawned lawsuits when a giant Swiss super collider was switched on, simulating the Big Bang. Surprise: the world didn't end.
September: Hurricane Gustav temporarily disrupted gasoline supplies prompting panic buying from Atlanta to Nashville, leading to more fleeting fuel shortages and spiking local prices.
April: Remember people rushing out to buy 10 or 15 bags of rice. Major food stores had to ration rice to prevent panic-buying during a fictional food shortage, that doubled prices. The bottom line: There is no rice shortage in the United States.
Fear of financial ruin is gripping America. In some respects, we choose to live in fear until we choose not to. Experts say defusing fear relies on gaining perspective, calming down, avoiding negative thinking, restoring confidence in our ability to face up to a crisis situation.
People need to be reasonable with their fears, not consumed by them before our economic crisis can be resolved.
