‘How not to crash when the Markets are Crashing: A Psychological Perspective’

1. 1 ‘How not to crash when the Markets are Crashing: A Psychological Perspective’ Gina G. Thanopoulou- Papakonstantinou Counselling Psychologist,, Ed.M., M.A. HARVARD UNIVERSITY

2. 2 • General Motors, has a financial loss of 51 billion dollars in 2008 & will cut down salaries by 15%. • SONY, had the worst financial performance in it’s history With revenues decreasing by 73% from last year. • YAHOO! Revenues have fallen almost by 1/3 compared to last year and as a result it is ready to fire 3500 employees. • AIR FRANCE/KLM, has financial losses of 700 million euros & will fire 5500 employees. • The American Psychology Association has announced a dramatic increase of the use of the Emergency Suicide attempt Hotline: By September 2008 228.000 calls for help were calculated. • In Greece, it is estimated that in 2009, the unemployment rate has reached the 9% (for 2010 already 9.4%). There is a 40% decrease in car sales and as a result the firing rate has reached in some areas the 25% - 35%. In general, the illegal firing has increased from 2% to 5% or 6%. Additionally, in 2009, there is a dramatic increase in the reported health problems associatedwith extreme stress due to the crisis. Some alarming facts

3. 3 Lehman Brother’s employees protest to get their jobs back……

4. 4 Times have changed………!!!

5. 5 The latest Global financial situation as described accurately on The Economist’s cover

6. 6 Affordable Vacation Plan for 2009

7. 7 Facing effectively the financial crisis-Introductory comments • Forced to work together – better collaboration & communication • Rethink intrapersonal and interpersonal Values • Rebuild ‘the architecture of our relationships’ • Re-evaluate the old ways of thinking and acting • Re-establish & Respect the ethical fair Rules & Values G. Thanopoulou, M. Protopapa

8. 8 Facing effectively the financial crisis-Introductory comments (cont’d) • Re-evaluate our values and the old rules & ways of thinking, acting & operating • Re-think & Re-establish how we live our lives, how we run our business, how we serve our countries, how we manage our families, how we raise our children, how we respect and balance our own selves & priorities G. Thanopoulou, M. Protopapa

9. 9 Analysis of the crisis from a psychological perspective • Elaborate, discover and establish newways to keep up faith during difficult times using • Balance, Composure, Integrity, Intelligence, Flexibility, Self-control, • Be Proactive not Reactive • Communication / Collaboration • Restructuring our lives & Prioritising our values • Rethinking more effective ways of communication & action • Only through this way we will survive ethically and Psychologically and will become better individuals and professionals G. Thanopoulou, M. Protopapa

10. 10 Analysis of the crisis from a psychological perspective (cont’d) • Only through this way we will survive ethically and Psychologically and will become better individuals and professionals, if we care enough to bring change into our mentalities, priorities & lives. • By becoming the change we want to bring into the world & by realizing we are part of it G. Thanopoulou, M. Protopapa

11. 11 Analysis of the crisis from a psychological perspective (cont’d) • By Investing and developing on Connections. ‘During difficult times we should turn attention to the connections that matter i.e. friends, family, personal faith, etc. It is through connection that the mind and the soul gives birth to positive energy that flows instantly and becomes the doorway of advance thinking that opens the brain and brings solutions’ (Dr. Ed. Hallowell, ‘Delivered from Destruction’, & ‘Crazy Busy’) G. Thanopoulou, M. Protopapa

12. 12 Perspective of Dr. Edward Hallowell – ‘Delivered from Distraction’ ‘ In order to survive this crazy world, this crisis and make this shock work for us and not against us, we must decide what MATTERS TO US THE MOST & to force our attention and energy on that, by cultivatingourhumanelement & by investinginourinterpersonalrelationships’ ‘Being too busy & financially preoccupied can become a HABIT, but what is the cost to our well being? We have transformed into ‘slaves’, followers’ of a lifestyle that we feel we have ‘to serve’ but in reality we don’t respect but we cannot escape from…..’ G. Thanopoulou, M. Protopapa

13. 13 Perspective of Dr. Edward Hallowell – ‘Delivered from Distraction’ Money is a way, the means, the vehicle, to a better quality life, not life Itself!!! ‘People now days became too busy and preoccupied with money & success that they do not take the time to decide and invest in what really matters most to them, let alone make time for it, i.e. personal life, family, friends, values, beliefs, etc. G. Thanopoulou, M. Protopapa

14. 14 Reasons for the impact of the current economic crisis • The world financial crisis is producing a different kind of fear that is chronic and pervasive because there is no foreseeable time frame for overcoming it. • People are “risk averse” and “loss averse.” (Dr. Ed.Hallowell, ‘Crazy Busy’) • They value income losses disproportionately to gains. • Losing or fear of losing income and security negative effects on happiness due to its effect on the level of loss (how much are we going to lose?) and on the level of insecurity (when is it going to end?). G. Thanopoulou, M. Protopapa

15. 15 Reasons for the impact of the current economic crisis (cont’d) In today’s world: • Life is devoted to the goal of achievement. • Wealth and privilege are the prevailing conditions. • Money defines life and character. • Money and success is a measure of economic and professional value and a way of assigning meaning, importance and worth to everyone and everything in the world. G. Thanopoulou, M. Protopapa

16. 16 Reasons for the impact of the current economic crisis (cont’d) However: • The gap between how the world is and how we want it to be has widened. • We have created for ourselves needs that we are now unable to fulfill. • We have too many obligations that seem extremely hard to balance. Consequently: • The lack of financial stability has turned financial needs to a psychological trap • The severe change in the financial status brings about drastic changes in life style • The result is not only a general disruption of life but also psychological stress related to loss of status and self esteem. G. Thanopoulou, M. Protopapa

17. 17 Any crisis can be a WARNINGBELL or AWAKEUPCALL, An Opportunity to Return to ‘what really matters’ EVERYTHING has a MEANING! The bigger the fall, the greater the lesson! So let’s start learning……. See this Crisis as a Learning Experience! To continue to work & create To turn our attention to our humanlifevalues, rules and relationships To respect our own pace physically and emotionally, our balance, our wellbeing, our liferules, to enjoy our simplejoys & pleasures of life To see & develop our lives holistically This crisis can become an opportunity to Return to what Really Matters G. Thanopoulou, M. Protopapa

18. 18 The psychological and psychosomatic effects (the hidden symptoms) of the current crisis on the individual, families and relationships A. On the Individual Expression of extremeAnxiety and Nervousness Psychosomaticsymptoms such as muscle tension, headaches, body aches, abdominal pains, high blood pressure, fine motor problems, palpitations, hormonal changes, mood shifts, tremors, panic attacks, chronic fatigue, memory problems, eating disorders, sleeping problems, sexual dysfunctions, heart problems, addictive behaviour, need to use of substances etc G. Thanopoulou, M. Protopapa

19. 19 The psychological and psychosomatic effects (the hidden symptoms) of the current crisis on the individual, families and relationships A. On the Individual (cont’d) Feelings of unworthiness, inadequacy, unexplainable and uncontrollable anger and frustration, low self esteem Low motivation ; passivity, lack of concentration, sadness, loss of interest & motivation, (depression), and / or excessive motivation ; hyperactivity and obsessions, (manic behaviours). Negative thinking, tendency to predict the worse, all or nothing thinking, thoughts of escapism, at worst, depressive suicidal thinking G. Thanopoulou, M. Protopapa

20. 20 The psychological effects (the hidden symptoms) of the current crisis on families and relationships B. On Families and Relationships Shaking the basic core of human and family relations Lack of concrete values and rules within the family Lack of communication and collaboration between family members. Crisis in the relation of the couple, distancing, isolation, alienation - aloneness, (internalised pain) Expression of extreme conflict, anger and violence, physical and verbal abuse, as a way ‘ to channel energy’ indirectly (externalised pain) G. Thanopoulou, M. Protopapa

21. 21 The psychological effects (the hidden symptoms) of the current crisis on families and relationships B. On Families and Relationships (cont’d) Crisis in the relation of parents-children, parents have an inability to concentrate on their parental role with love & set boundaries & as a result children develop various behaviours such as aggressive (juvenile delinquent behaviour, use of drugs, alcohol) &/or depressive behaviours, fallen academic performance G. Thanopoulou, M. Protopapa

22. 22 Tips for dealing with the crisis • Take a break from bad news. • Make a plan for how to adjust to the changing financial conditions. • Concentrate on things you can control. • Think wisely. • Keep things in perspective. • Stay healthy. • Allow yourself some personal time to clear your mind of stress and negative thoughts. • Talk to people you trust and feel comfortable with. • Do not hesitate to seek professional help G. Thanopoulou, M. Protopapa

23. 23 Coping Strategies through Psychological Therapy and Support Constructivethinking: Try to change our negative thinking into more Positive perspective. Appreciating & Accepting the NOWas is. Toleratingambiguity & uncertainty by developing Adaptability & Flexibility G. Thanopoulou, M. Protopapa

24. 24 Coping Strategies through Psychological Therapy and Support By accepting CHANGE as a necessary fact of life and by becoming the change you want to bring to the world. ‘Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the CHANGE we seek.’ Barak Obama, 44th President of United States. G. Thanopoulou, M. Protopapa

25. 25 Coping Strategies through Psychological Therapy and Support By Investing and developing on Connection. ‘During difficult times we should turn attention to the connections that matter & help & avoid the ones that do not i.e. friends, family, therapists, faith etc. It is through connection that the mind and the soul gives birth to positive energy that flows instantly and becomes the doorway of advance thinking that opens the brain and brings solutions’ (Ed. Hallowell) Positive energy can become the driving force of change that will take us out of the dark tunnel into LIGHT! G. Thanopoulou, M. Protopapa

26. 26 There is only one way when you reach ‘rock bottom’ ; going up!!! THANK YOU