Anger replaces Denial, as financial crisis evolves

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Human beings go through a number of stages when confronted by major change. As first described by Elisabeth Kübler Ross, the process starts with:

• Denial that any change is taking place
• Then anger at the implications of the change
• Bargaining to reduce its magnitude
• Depression as reality begins to be confronted
• Finally acceptance of what has happened.

John Authers notes perceptively in today’s Financial Times that Kübler Ross’ model is likely to be a good guide to the evolution of the financial crisis. He suggests that the world is now moving on from Denial, into the Anger stage. Some still deny we are facing a major downturn. But public anger over the bonus payments issue is now on the rise around the world.

Authers suggests that Bargaining will be the next stage, as players try to develop a solution to the crisis. Then we will go through a stage of Depression, at what has been lost, before reaching the Acceptance stage, and moving on. Moving through the Denial stage has taken almost 2 years. So the blog fears we may still have a long journey ahead.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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