Anxiety Files

Simple and powerful techniques for coping with anxiety and worry.

Robert L. Leahy, Ph.D., is the author of Anxiety Free and The Worry Cure. He is Clinical Professor of Psychology in Psychiatry at Weill-Cornell Medical School and Director of the American Institute for Cognitive Therapy. See full bio

October 6, 2008, Anxiety

Comments on "How Optimism Got Us in Trouble in Financial Markets: Or Why Smart People do Stupid Things"

How Optimism Got Us in Trouble in Financial Markets: Or Why Smart People do Stupid Things

By Robert L. Leahy, Ph.D. on October 6, 2008 in Anxiety Files

There are many things that we should worry about --but we don't. The same processes that lead us to avoid everyday real risks have contributed to the development of an overly risky financial market and credit crisis. The financial crisis is due to building a house of cards and then acting like we are surprised when it collapses. But what has led us to build a house of cards? And, why was the house of cards built by highly intelligent people---many with MBAs? How can smart people be so stupid? Read More

i strongly agree, the level

Submitted by farouk on October 7, 2008 - 2:24am.

i strongly agree, the level of risk that was created is tremendous, no wonder the collapse is that hard

What took it so long

Submitted by Adam on October 8, 2008 - 3:46am.

The idea that the US economy was going to collapse has been around for many years. I suppose mainly spurred by their immense investment in the military.

I suppose everything eventually accumlates and something needed to happen.

Financial disaster

Submitted by Robert McAndrews on October 8, 2008 - 10:38am.

Dr. Leahy spells it out for us. No wonder the cards are unstable and tumbling one after another to the ground. How much longer; how many more forclosers and byouts...no one really knows. Are people anxious...no doubt! The whole world is watching and trying to decide what to do. Someday, this whole economic system will fail, and when it does, life will get very interesting. From a pastor's perspective, one who like many has a 401K, I am reminded not to put my trust in physical things(that can come and go)but rather to invest my time, efforts and love toward others. Family, friends and those trying to find their way through this life. To be able to offer to those searching, questioning the meaning of life, or fearing of what tomorrow may bring, a peace that this old world can never give, and that peace would be the Peace of God. God has given us all minds to use and we need to be cautious and wise as Dr. Leahy has pointed out. Where is it all going? Time will tell.