Obama Administration And Banks Near Deal On Mortgage Fraud Legal Liability

The Economic Normalcy Bias

In 1977, two Boeing 747s collided on an airstrip in the Canary Islands. According to accident investigat­ors, those who survived the initial blast in one plane had time to escape before a fire consumed the wreckage. But eyewitness­es reported that many remained in their seat looking perfectly content—as if nothing was wrong.

Not surprising­ly, dozens of these dazed victims were burned to death, and the episode became a reminder of the so-called normalcy bias—a cognitive phenomenon whereby many who are faced with imminent disaster instantly convince themselves that everything is normal and that they don’t have to modify their behavior.

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Read the Article at HuffingtonPost