NewsBlaze search box Daily News header

The Psychology of Finance

By   get stories by email

It may come as no surprise that victims of horrific natural disasters experience many of the same symptoms as individuals in the midst of a financial crisis. For example, victims of the recent earthquake in Japan exhibited both physical and emotional abnormalities such as "shock, anger, guilt and confusion;" as well as "fatigue, insomnia, and eating disturbances."

Logic then suggests that the solutions to symptoms from both recessions and disasters would be analogous in nature.

The American Psychiatric Association and Dr. Ann Wolbert Burgess, Professor of Psychiatric Nursing, William F.Connell School of Nursing, Boston College; agree that victims suffering from the symptoms of disaster receive therapies consistent with restoring a sense of control, security and safety.

In her book, "Victimology: Theories and Applications", Dr. Burgess points out that the role of the family is of utmost importance as a resource of support; victims can only heal when they no longer perceive themselves as being alone. Connecting with individuals and institutions predisposed to empathize with the sufferer, is also tantamount to recovery according to her report.

In an address to the United Nations General Assembly, Dr.Sakiko Fukuda-Parr, a financial expert who just launched a new website, outlined the long-term effects of pro-longed recession on people from various global economies. Consistent with the Burgess standpoint, the effects are all-encompassing.

In a quote from the address, "Households cope to meet basic needs through a variety of mechanisms such as sending out children or the elderly to work, reducing consumption of food and other essentials with consequences for health, withdrawing children from school and so on. Such coping strategies have not only immediate consequences for well-being of the individual and family, but undermine longer term development for the society as a whole."

Dr. Fukuda-Parr does not paint a pleasant picture. If there is any proof of hope for investors, it may lie in the proverbial pudding. Taking the Burgess model, it would seem probable that application of the same techniques used to help earthquake victims might in fact soothe the tattered financial soul. If a financial institution could take the paradigm purported by Burgess and succeed in superimposing its blueprint onto their core structure, the ideal remedy may be on the horizon.

While systemic change in any well-established industry can only occur over time; every revolution has a point of origin. The financial institutions that will be able to create a positive financial exemplar will undoubtedly incorporate proactive methods of partnering with their investors. Those that master this new type of partnership will lead the pack. In times wrought with financial insecurity, steady ground will be the place investors instinctively gravitate to for even the smallest modicum of relief.

Khurram Aziz is a freelance writer and entrepreneur with over 10 years' experience in publishing. Please feel free to add him on Twitter @khurramaziz1981. Read more stories by Khurram Aziz.

  Please click this get stories by email button to be notified about future stories, and please leave a comment below.

  Please leave a comment here     If it does not display within 10 seconds, please refresh the page

Related Business News

Some economies around the world are struggling, but China is not the only exception. India is thriving and investors are taking note for several reasons.
If you want to make your small business a big business, now is the time to start planning ahead, for payroll, safety, accessibility, before it is a problem.
Businesses are often baffled when faced with the choices of keeping everything internal or outsource specific tasks. Explore the pros and cons and whether to treat each situation differently.
Robert Bakke says religions teach poverty, schools teach losing, Washington promotes class warfare, kills middle class ambition, puts people on government support.
Carriers set their sights on business customers, for Voice over LTE, initially in major cities first before working on filling in the gaps.
Tweets have been quietly integrated into search results on mobile devices for a few months now. But now they're making their way into desktop search results again, too.


NewsBlaze Writers Of The Month

Popular Stories This Month

newsletter logo

Copyright © 2004-2015 NewsBlaze Pty. Ltd.
Use of this website is subject to our Terms of Service and Privacy Policy  | DMCA Notice               Press Room   |    Visit NewsBlaze Mobile Site